ROUGEMONT, QC, Oct. 26, 2011 /CNW Telbec/ - Lassonde Industries Inc.
(TSX: LAS.A) ("Lassonde") announces that is has obtained $15 million in
additional financing related to its acquisition of Clement Pappas and
Company, Inc. completed on August 12, 2011. The unsecured financing was
provided by two Canadian financial institutions to a subsidiary of the
Company and includes a $5 million participating loan and a $10 million
conventional loan at an interest rate of 8.5%. The proceeds of these
loans will be used to reduce the Company's operating debt.
The conventional loan has a term of 7 years with repayment of principal
starting in 2015. The participating loan is tied to the performance of
Clement Pappas and is repayable at the option of the lenders after 3
years, or at the option of the Company after 7 years. The amount
repayable as principal of the participating loan is equal to 3% of 6.5
times the EBITDA of Clement Pappas for the four quarters preceding
repayment, minus funded indebtedness. For the 12-month period ended
August 10, 2011, EBITDA of Clement Pappas was approximately
USD$59 million. If demand for repayment of the participating loan is
made by the lenders and could cause the Company to be in default on its
other borrowings, the Company will have the option of repaying the
participating loan through the issuance to the lenders of Class A
subordinate voting shares at 95% of the market price at that time.
About Lassonde Industries Inc.
Lassonde Industries Inc. is a North American leader in the development,
manufacture and sale of innovative and distinctive lines of fruit and
vegetable juices and drinks marketed under recognized brands such as
Everfresh, Fairlee, Flavür, Fruité, Graves, Oasis and Rougemont.
Lassonde markets specialty food products such as fondue broths and
sauces, cheese and chocolate fondues, soups, gravies, and sauces for
pasta and pizza under recognized trademarks such as Antico and Canton.
The Company also imports and markets selected wines from various
countries of origin, and manufactures apple ciders and wine-based
Subsidiaries include Clement Pappas and Company, Inc., headquartered in
New Jersey, which is the second-largest producer of store brand
ready-to-drink fruit juices and drinks in the United States, and a
major producer of cranberry juices, drinks and sauces. Clement Pappas
operates five state-of-the-art production facilities and a cranberry
receiving station that enable it to provide its U.S. customers with
Lassonde is committed to maintaining high standards of quality and
promoting active and healthy living. More than 2,000 employees
contribute, through their expertise, to the Company's growth and
superior quality products. To learn more, visit www.lassonde.com.
SEDAR registration number: 00002099
Caution Concerning Forward-Looking Statements
This press release contains forward-looking statements that are based on
certain assumptions. These forward-looking statements are subject to a
number of risks and uncertainties that could cause actual results or
events to differ materially from current expectations. Additional
factors are discussed in materials filed from time to time with the
securities regulatory authorities in Canada. Lassonde Industries Inc.
disclaims any intention or obligation to update or revise any
forward-looking statements except as required by law.
SOURCE LASSONDE INDUSTRIES INC.
For further information:
| Investor contact |
Guy Blanchette, CA, FCMA
Vice-President and Chief Financial Officer
Lassonde Industries Inc.
450-469-4926, extension 10782
| Media contact |
Lassonde Industries Inc.
450-469-4926, extension 10265