TORONTO, October 2, 2019 – Chesswood Group Limited (“Chesswood” or the “Company”) (TSX: CHW) is pleased to announce the completion of the renewals of its two US$250 million primary borrowing facilities. These two facilities are provided by two separate bank syndicates, including leading Canadian and American banks active in our industry, and are both led by Royal Bank of Canada.
“Our senior revolving facility allows us tremendous flexibility to fund most types of finance receivables where ever they are originated within our group, and also now includes a US$50 million accordion feature that can increase the overall revolver to US$300 million. Pawnee Leasing’s US$250 million warehouse facility serves as the main platform for Pawnee’s prime originations before they are securitized” said Barry Shafran, Chesswood’s President and CEO. “These renewals were completed ahead of the final year of their terms and provide a modest but welcome reduction in our cost of funds while demonstrating the support Chesswood continues to receive from our lenders. We’re very grateful for the support of our many bank partners in Canada and the United States” added Shafran.
The term of the senior revolving facility now extends to December 2022 while the term of the warehouse facility extends to September 2021. These two facility renewals solidify most of Chesswood’s treasury resources for the coming years and provide the Company with a strong capital base from which to support future growth.
Through three wholly-owned subsidiaries in the U.S. and Canada, Chesswood Group Limited is North America’s only publicly-traded commercial equipment finance company focused on small and medium-sized businesses. Our Colorado-based Pawnee Leasing Corporation, founded in 1982, finances a highly diversified portfolio of commercial equipment leases and loans through relationships with over 600 independent brokers in the U.S. In Canada, Blue Chip Leasing Corporation has been originating and servicing commercial equipment leases and loans since 1996, and today operates through a nationwide network of more than 50 independent brokers. Located in Houston, Texas, Tandem Finance Inc. provides equipment financing to small and medium sized businesses in the U.S. through the equipment vendor channel. Based in Toronto, Canada, Chesswood’s shares trade on the Toronto Stock Exchange under the symbol CHW.
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Chesswood Group Limited
This press release contains forward-looking statements that involve a number of risks and uncertainties because they relate to events and depend on circumstances that will occur in the future. Many factors could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements. By its nature, this information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. Additional information about the risks and uncertainties of the Company’s businesses and material factors or assumptions on which information contained in forward-looking statements is based is provided in its publicly filed documents, including the Company’s annual information form and management’s discussion and analysis of the financial condition and performance, which are available electronically through the System for Electronic Document Analysis and Retrieval at www.sedar.com.
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