Chesswood Group Limited (“Chesswood”) (TSX: CHW) announced today that Pawnee Leasing Corporation (“Pawnee”), Chesswood’s largest operating business, renewed and expanded its credit facility, for a term of four years, expiring in July 2016. The existing credit facility was due to mature in September 2013.
“Pawnee’s lenders have once again demonstrated their support of our growth by renewing and expanding Pawnee’s credit facility for another four years” said Chesswood’s President and CEO, Barry Shafran. “Our credit facility has been increased once again, to US$85 million from US$55 million while the accordion feature of our loan agreement has been increased to US$115 million from US$85 million” added Shafran.
Chesswood has once again contributed an additional US$2.0 million of capital to Pawnee, in conjunction with the renewal, to further support Pawnee’s continued growth. Pawnee’s portfolio has grown by more than 30% since the last renewal of its banking agreement in September 2010.
Pawnee’s syndicate, once again led by JPMorgan Chase, also includes KeyBank and BBVA Compass. The terms and conditions of the renewal facility are substantially similar to the last credit agreement.
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