Daily News: February 14, 2012

Liquor Stores Secures $150 Million Revolver With CIBC, Others

Liquor Stores N.A. Ltd., a private liquor retailer in Canada, announced that it entered into a new $150 million revolving credit facility. The new agreement replaces the company’s prior credit agreement and has a term of three years. The banks participating in the new credit agreement are Canadian Imperial Bank of Commerce (CIBC), HSBC Bank Canada and National Bank of Canada. The amount available under the revolving credit facility can be increased by up to $50 million upon the agreement of existing or additional lenders.

The new revolving credit facility will be used for general corporate purposes, including funding acquisitions and the construction of new stores. CIBC acted as lead arranger and book runner for the facility and will serve as the administrative and security agent for the syndicate of lenders. The new credit agreement contains certain terms and conditions, which differ from the company’s prior credit agreement, including more favorable interest rates for Liquor Stores as well as new financial covenants relative to defined levels of the company’s debt to EBITDA.

Rick Crook, president and CEO, stated, “We are very pleased with the new facility. The facility will provide us with capital at attractive rates, and coupled with our anticipated strong cash flow, provides us with continued financial flexibility to fund future growth.”

The company currently operates 240 retail liquor stores in Alberta, British Columbia, Alaska and Kentucky.