Symbol: CVL (TSX)
CALGARY, Dec. 17, 2014 /CNW/ - Cervus Equipment Corporation ("Cervus") (TSX: CVL) is pleased to announce that it has entered into an amended and restated revolving credit facility with a syndicate of underwriters led by The Toronto-Dominion Bank and including Canadian Imperial Bank of Commerce and Wells Fargo. The principal amount available has been increased from $60 million under the old facility to $100 million under this new facility. The facility is committed for a two year term and contains an $80 million accordion which Cervus may request as an increase to the total available facility. The principal purpose of this facility is to finance Cervus' general corporate operating requirements while maintaining strategic flexibility, including funding of capital expenditures. As of the date hereof, approximately $48 million has been drawn down on this facility.
"Cervus has strong relationships with each of the syndicate partners, and we are pleased with the capabilities represented in the lending group," said Graham Drake, President and CEO of Cervus. "The completion of the $100 million committed credit facility supports Cervus' significant growth in 2014, and maintains our future capital flexibility."
Cervus also announces that is has entered into a new facility with Farm Credit Corporation ("FCC"). The new FCC facility will increase the mortgage loan amounts available to Cervus from the existing $41 million to $50 million. As of the date hereof, approximately $36 million has been drawn down on the FCC facility.
Cervus acquires and operates authorized agricultural, commercial, industrial and transportation equipment dealerships. The Company has interests in 75 dealerships in Canada, New Zealand, and Australia, employing more than 1,700 people. The primary equipment brands represented by Cervus include John Deere agricultural equipment; Bobcat and JCB construction equipment; Clark, Sellick and Doosan material handling equipment; and Peterbilt transportation equipment. The common shares of Cervus are listed on the Toronto Stock Exchange and trade under the symbol "CVL".
SOURCE: Cervus Equipment Corporation
For further information: Graham Drake - President & CEO, Telephone: (403) 567-2095, Fax: (403) 567-0392, Email: [email protected]; Randy Muth - Chief Financial Officer, Telephone: (403) 567-2097, Fax: (403) 567-0392, Email: [email protected]