(1888PressRelease) September 28, 2010
- TORONTO - Chesswood Income Fund (the "Fund" or "Chesswood") (TSX:CHW.UN) announced today that Pawnee Leasing Corporation ("Pawnee"), the Fund's largest operating business, renewed and expanded its credit facility, for a term of three years. The existing credit facility was due to mature in May, 2011.
"We're very pleased that Pawnee's lenders have once again demonstrated their support of its growth by renewing and expanding Pawnee's credit facility for another three years" said Chesswood's President and CEO, Barry Shafran. "Our credit facility has been increased to US$55 million while the accordion feature of our loan agreement has been increased to US$85 million from US$65 million" added Shafran. Pawnee utilized US$37 million under its credit facility, as of the end of August.
Pawnee's new facility syndicate, once again led by JPMorgan Chase, also includes KeyBank and BBVA Compass. The terms and conditions of the renewal facility are substantially similar to the last credit agreement, and provide for the upcoming conversion of the Fund.
As previously announced, Chesswood has contributed US$2 million of additional capital to Pawnee, in conjunction with the new credit facility, to further support Pawnee's growth.
About Chesswood Income Fund
Chesswood Income Fund is a financial services trust with operating businesses in both Canada and the U.S.
For more information visit www.ChesswoodFund.com.