Chesswood Expands Bank Credit Facility to $170MM

Chesswood Group, with equipment finance businesses that include Pawnee Leasing and BlueChip Leasing, expanded and renewed its corporate revolving credit facility for a term of three years, expiring in December 2019.

The existing $150 million credit facility was due to mature in December 2017. The credit facility has been increased to $170 million and now includes a $80 million accordion feature which would expand the facility to $250 million, if exercised.

The syndicate of six banks was once again led by Royal Bank of Canada and includes BBVA Compass, Bank of Montreal, National Bank of Canada, TD Securities and Laurentian Bank of Canada.

“We’re very pleased that the company’s syndicate of lenders have once again demonstrated their support of our team and the growth of our businesses by renewing and expanding our credit facility for another three years,” said Chesswood’s President and CEO Barry Shafran. “We’re also pleased that our lending syndicate continues to be comprised of leading Canadian and U.S. banks.”

The company has drawn $140 million under its credit facility as of the end of November. Chesswood’s overall leverage remains modest following the sale of its two non-commercial finance businesses over the last year and the subsequent pay-down of this credit facility with a majority of the proceeds. The company has a very strong balance sheet that is well positioned to support its portfolio growth while continuing to provide shareholders with an attractive yield, paid through monthly dividends.

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