|
06/07/12 -- FP NewspapersInc. (TSX:FP) is pleased to announce that FP Canadian NewspapersLimited Partnership ("FPLP") has finalized a long term debt renewalagreement with HSBC Bank Canada. The new agreement, which runsthrough January 31, 2016, continues the lending relationship whichstarted in December 2009. The key terms of the renewal agreement include the release of $5.0million of restricted cash which FPLP had pledged under theoriginal agreement, and interest rate spreads over prevailingbankers acceptance rates based on quarterly trailing twelve monthleverage ratios ranging from 1.75% to 2.75%. The previousagreement, which was to have run until January 31, 2013, includedinterest rate spreads over prevailing bankers acceptance ratesranging from 3.0% to 3.75%. The renewal agreement includes annualprincipal repayments of $1.0 million compared to $5.0 million underthe original loan agreement. Total principal under the renewalagreement is $48.3 million and at the current leverage ratio,annual interest savings amounts to approximately $0.6 million. "We are very pleased to have completed this renewal on the aboveterms and appreciate the support we have received from HSBC BankCanada," said Ron Stern, Chief Executive Officer of FPLP. "Whilethe renewal agreement has a reduced level of required principalrepayments, we believe continued de-leveraging is prudent over thelong term, and the agreement does allow us to make additionalprincipal repayments with no penalty. Voluntary additionalprincipal repayments prior to the expiry of the renewal agreementwill be determined based on future business conditions. Asnewspaper print advertising revenue levels are continuing todecline, efforts to reduce expenses in all areas while trying togrow new revenue sources continue to be the major focus of ourbusiness units." FP Newspapers Inc. owns securities entitling it to 49% of thedistributable cash of FP Canadian Newspapers Limited Partnership.FP Canadian Newspapers Limited Partnership owns the Winnipeg FreePress, the Brandon Sun, and their related businesses, as well asthe Canstar Community News division, the publisher of eightcommunity and special interest newspapers in the Winnipeg region,and the Carillon in Steinbach with its related commercial printingoperations. The Winnipeg Free Press publishes six days a week fordelivery to subscribers and single copy sales, serving Winnipeg andManitoba with an average Monday through Saturday circulation ofapproximately 122,700 copies. On Sundays the Winnipeg Free Presspublishes a newspaper sold through single-copy retail outlets andvending boxes. The Brandon Sun publishes six days a week, servingthe region with an average circulation of approximately 13,200copies. Canstar Community News publishes weekly with an averagecirculation of approximately 200,000 copies. The businesses employapproximately 570 people in Winnipeg, Brandon and Steinbach.Further information can be found at , and inthe disclosure documents filed by FP Newspapers Inc. with thesecurities regulatory authorities, available at. Contacts: FP Newspapers Inc. Daniel Koshowski CFO (204) 697-7425 (204) 632-0281 (FAX) Copyright @ Marketwire. The e-commerce company in China offers quality products such as Aluminum Tool Cases Manufacturer , China Aluminum Watch Cases, and more. For more , please visit Aluminum Cosmetic Cases today!
Related Articles -
Aluminum Tool Cases Manufacturer, China Aluminum Watch Cases,
|
