GE Capital Provides Additional Debt Financing to SIR
SIR Corp., a privately held Canadian corporation that owns and operates a portfolio of 54 restaurants in Canada, said it has entered into a second amended and restated loan agreement with its existing senior lender GE Capital to add a new $4 million tranche B development loan to the existing $12 million tranche A development loan and the existing $26 million term loan.
Under the terms of the loan agreement, the term of the tranche B development loan will be coterminous with the existing facilities (November 14, 2016). Additionally, under the terms of the loan agreement, tranche B is intended to be drawn by October 10, 2013. Such date can be extended until April 10, 2014, at the sole discretion of GE Capital. A copy of the amendment will be filed on SEDAR.
The tranche B development loan is available to enable SIR to finance costs incurred in connection with the acquisition of furniture, fixtures, equipment and leasehold improvements relating to new locations and renovations and capital expenditure costs relating to existing locations.
SIR has a number of agreements and interests related to SIR Royalty Income Fund, a trust governed by the laws of the province of Ontario that receives distribution income from its investment in the SIR Royalty Limited Partnership and interest income from the SIR Loan. The Fund intends to pay distributions to unit holders on a monthly basis.
Peter Fowler, president and CEO of SIR, stated: “This additional senior debt with GE Capital further enhances our flexibility to finance prudent growth through the development of new corporately owned restaurants, as well as renovation programs for our existing restaurants. We expect that new restaurant growth and renovations of existing restaurants, as market conditions permit, will benefit both SIR Corp. and, ultimately, the unit holders of the fund.”