WINNIPEG, MB, June 17, 2020 /CNW/ - Lakeview Hotel Investment Corp. ("LHIC") announces that it has amended its amended and restated credit agreement dated January 31, 2018 as amended by a first amending agreement on December 18, 2018, a second amending agreement on June 19, 2019, a third amending agreement on December 31, 2019 and a fourth amending agreement dated January 13, 2020 (the "ARCA") with a syndicate of lenders led by Alberta Treasury Branches and including Business Development Bank of Canada (BDC) and Roynat Capital pursuant to a Fifth Amending Agreement to the ARCA dated effective May 31, 2020. The ARCA consolidated certain amendments to the credit agreement dated August 25, 2014, among other things.
Pursuant to the Fifth Amending Agreement to the ARCA, the lenders and LHIC have agreed, among other things:
- To extend the maturity date under the ARCA from May 31, 2020 to December 31, 2020.
- To provide for interest only payments until December 31, 2020 retroactive to February 28, 2020. Commencing June 30, 2020 monthly interest payments will be capped at $25,000 with the balance accruing and payable on December 31, 2020.
- To list for sale its hotel properties located in Edson, Alberta and Fort St. John, British Columbia. The proceeds of which, if sold, are to be used to pay down existing indebtedness under the ARCA to the lenders.
- To increase the lending rate payable by LHIC to the prime lending rate plus 7%.
Through the sale of assets and refinancing of other assets, LHIC intends to fully repay the syndicate of lenders by the December 31, 2020 maturity date.
Lakeview Hotel Investment Corp is listed on the TSX Venture Exchange under the symbol "LHR". Lakeview Hotel Investment Corp receives income from ownership, management and licensing of hotel properties.
The TSX Venture Exchange nor its Regulation Service Provider (as the term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Lakeview Hotel Investment Corp
For further information: Avrum Senensky, Executive Vice President, Tel: (204) 947-1161, Fax: (204) 957-1697, Email [email protected]