TD Bank Leads Syndicate to Increase Cervus Revolver
Cervus Equipment entered into an amended facility with a syndicate of underwriters led by TD Bank, and including CIBC and Wells Fargo. The principal amount available was increased from $60 million under the old facility to $100 million under this new facility.
The facility is committed for a two-year term and contains an $80 million accordion, which Cervus may request as an increase to the total available facility. The principal purpose of this facility is to finance Cervus’ general corporate operating requirements while maintaining strategic flexibility, including funding of capital expenditures. As of the date hereof, approximately $48 million has been drawn down on this facility.
“Cervus has strong relationships with each of the syndicate partners, and we are pleased with the capabilities represented in the lending group,” said Graham Drake, President and CEO of Cervus. “The completion of the $100 million committed credit facility supports Cervus’ significant growth in 2014, and maintains our future capital flexibility.”
Cervus also entered into a new facility with Farm Credit. The new facility will increase the mortgage loan amounts available to Cervus from the existing $41 million to $50 million. As of the date hereof, approximately $36 million has been drawn down on the FCC facility.
Cervus acquires and operates authorized agricultural, commercial, industrial and transportation equipment dealerships.