TORONTO, Dec. 18, 2017 /CNW/ - Park Lawn Corporation (TSX:PLC) ("PLC") is pleased to announce another important milestone in its growth plan with the closing of a new syndicated bank financing arrangement led by National Bank of Canada and including Bank of Montreal and The Toronto-Dominion Bank.
The financing arrangement, which replaces PLC's existing credit facilities with National Bank, has a term of five years and more than triples PLC's borrowing capacity to $125 million. The additional credit will provide PLC with further flexibility as it continues to pursue its growth strategy. In particular, the revolving credit facility is expected to support PLC's ability to capitalize on organic projects and acquisition opportunities as they arise while maintaining a prudent approach to leverage.
Highlights of the new credit facilities include:
- $75 million committed credit facility
- Additional $50 million accordion facility
- Five year revolving facility
"We are pleased to be expanding our relationship with National Bank and developing new relationships with BMO and TD. I am confident that this transaction will enhance our success as we continue to grow our business in both Canada and the United States," said Andrew Clark, Chairman and CEO of PLC.
About Park Lawn Corporation
PLC provides goods and services associated with the disposition and memorialization of human remains. Products and services are sold on a pre-planned basis (pre-need) or at the time of a death (at-need). PLC and its subsidiaries own and operate 89 businesses including cemeteries, crematoria, funeral homes, chapels, planning offices and a transfer service. PLC operates in Ontario, Quebec, Manitoba, Saskatchewan, British Columbia, Michigan, Kentucky & Texas, Illinois.
Cautionary Statement Regarding Forward-Looking Information
This news release may contain forward-looking statements (within the meaning of applicable securities laws) relating to the business of PLC and the environment in which it operates. Forward-looking statements are identified by words such as "believe", "anticipate", "project", "expect", "intend", "plan", "will", "may", "estimate", "pro-forma" and other similar expressions. These statements are based on PLC's expectations, estimates, forecasts and projections and include, without limitation, statements regarding PLC's increased financial flexibility, the continued pursuit of its growth strategy, its ability to capitalize on organic projects and acquisition opportunities, and continued success in executing its growth plan. The forward-looking statements in this news release are based on certain assumptions, including without limitation that PLC's business will continue to perform in a manner consistent with past practice, and that the new credit facility will have a positive impact on PLC's financial position. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including, but not limited to, the factors discussed under the heading "Risk Factors" in PLC's annual information form available at www.sedar.com. There can be no assurance that forward-looking statements will prove to be accurate as actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, these forward-looking statements are made as of the date of this news release and, except as expressly required by applicable law, PLC assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
SOURCE Park Lawn Corporation
For further information: Andrew Clark, Chairman & Chief Executive Officer, (416) 231-1462; Joseph Leeder, Chief Financial Officer, (416) 231-1462; Suzanne Cowan, VP, Business Development & Corporate Affairs, (416) 231-1462, [email protected]