StorageVault Announces 24 Million Credit Agreement with Bank of Montreal
April 24, 2012
STORAGEVAULT CANADA INC. (“StorageVault”) (SVI-TSX-V) is pleased to announce that under the terms of a credit agreement with the Bank of Montreal (‘BMO”), BMO has undertaken to provide $24 million in credit facilities to StorageVault. The credit facilities are comprised of: a $20 million revolving reducing term loan for re-financing of existing term debt and for future acquisition of self storage facilities; a $2 million revolving reducing capital expenditure line of credit for expansion of PUPS portable storage facilities; a $1 million revolving reducing line for the purchase of equipment associated with the operation of PUPS; and a treasury risk management facility subject to a limit of $1 million.
Financing under the terms of the credit agreement is subject to a number of customary and usual conditions for this type of transaction, including but not limited to: (i) the satisfactory completion of loan and account documentation; (ii) satisfactory compliance with financial and non-financial covenants normally applicable to transactions of this nature; (iii) compliance by StorageVault with all material laws, including environmental regulations. There is no assurance that StorageVault will be able to satisfy all terms and conditions of the credit agreement that are required in order to be eligible to drawdown funds under the credit facilities. Furthermore, even if StorageVault does satisfy such terms and conditions, there is no assurance that StorageVault will take advantage of the credit facilities and drawdown any funds.
About StorageVault Canada Inc.
StorageVault currently owns and operates Trans Can Mini-Stor in Regina, Kenaston Self Storage in Winnipeg, B&B Self Storage in Cambridge, Parksville Mini Storage in the Regional District of Nanaimo and Canadian PUPS in Saskatoon. Trans Can Mini-Stor, Kenaston Self Storage, B&B Mini Storage and Parksville Mini Storage are fixed unit storage facilities operating in conjunction with high margin Canadian PUPS portable storage franchises at each location. StorageVault operates Canadian PUPS in Saskatoon as a stand-alone portable storage franchise. StorageVault also manages five self-storage facilities in southern Ontario and intends to continue to grow its business through the acquisition of additional self-storage properties, and organically as master franchisee through the development of Canadian PUPS portable storage facilities in Canada.
For further information, contact
Mr. Alan Simpson
3603 Selinger Crescent
Regina, Saskatchewan S4V 2H7
Tel: (306) 536-3771
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Information: This news release may contain certain forward-looking information. All statements included herein, other than statements of historical fact, is forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. A description of assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in StorageVault’s disclosure documents on the SEDAR website at www.sedar.com.