RBC Leads $150MM Chesswood Facility
Chesswood Group announced it has entered into a new three year, $150 million, revolving senior secured credit facility. The facility also includes a $50 million accordion feature which would expand the facility to $200 million, if exercised.
The new credit facility will support growth in finance receivables, provide for Chesswood’s working capital needs and for general corporate purposes. This new corporate credit facility replaces the $105 million revolving credit facility of Pawnee Leasing, and allows Chesswood to manage the allocation of capital to its various financial services businesses in Canada and the U.S., internally.
Chesswood said it used approximately $94.0 million of its availability under this new credit facility to repay and retire the Pawnee Leasing credit facility.
“The additional liquidity from our expanded facility provides us with greater capacity, in support of our multiple growth initiatives,” stated Barry Shafran, Chesswood’s president. “This new facility, available in U.S. or Canadian dollars, also improves our financial flexibility by centralizing treasury management and making the provision of capital to individual businesses far easier”, added Shafran.
The credit facility is led by Royal Bank of Canada and includes a syndicate of leading Canadian and U.S. financial institutions, including BBVA Compass as syndication agent.