This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Edleun Announces Substantially Increased $42 Million Credit Facility Agreement To Fund New Developments

CALGARY, July 29, 2013 /CNW/ - Edleun Group, Inc. ("Edleun" or the "Company") (TSX-V: EDU), a leading provider of quality early childhood education and care in Canada announced today amended terms of its credit facility with its current bank lender resulting in a $15 million increase to the $27 million facility previously in place.

The availability of credit under the expanded facility supports growth of the Company's new development program following the completion of two new and highly successful development projects.  Under the terms of the amended credit agreement, the Company may borrow under its interim project financing credit facility for four new child care centres.  The Company can then avail itself of take-out financing on the completed developments using an in place credit facility for an amount up to 90% of development cost when operating income from the centre on a stabilized basis achieves two times debt service coverage.

"This certainly augments our plan to step up the growth of the Company," noted Mary Ann Curran, Edleun's Chief Executive Officer. "Combined with an increasingly robust funnel for leasehold locations that enable new centre openings with limited capital investment, we are well positioned to leverage our platform without dilution or additional overhead costs.  We are enthusiastic to be in a position to deploy these funds to highly-accretive investments in facilities consistent with our strategy.  Developing new purpose-built facilities in underserved markets furthers our mission of providing Canadian families with the best care and enhanced programming for their children."

Edleun's President, Dale Kearns, commented that, "We are very pleased to have the continued support of our lender. We believe that this further validation from a major Canadian Bank is a testament to the Company's business model, profitability of its operations, and merit of its new development program. Since we opened our first two new centres, we have improved the design of the building and space efficiency, materials and site utilization. Relocation of services and more efficient common areas result in a 15% reduction in gross area resulting in a substantially lower construction cost without affecting space available for children or the centre's total capacity.  At present we have six potential sites in our pipeline in Alberta that could accommodate the new design."


Certain statements in this Release which are not historical facts may constitute forward-looking statements or forward- looking information within the meaning of applicable securities laws ("forward-looking statements"). Any statements related to Edleun's projected revenues, earnings, growth rates, revenue mix, staffing and resources, and product plans are forward looking statements as are any statements relating to future events, conditions or circumstances. The use of terms such as "believes", "anticipated", "expected", "projected", "targeting", "estimate", "intend" and similar terms are intended to assist in identification of these forward-looking statements. Readers are cautioned not to place undue reliance upon any such forward-looking statements. Such forward-looking statements are not promises or guarantees of future performance and involve both known and unknown risks and uncertainties that may cause the actual results, performance, achievements or developments of Edleun to differ materially from the results, performance, achievements or developments expressed or implied by such forward-looking statements. Forward-looking statements are based on management's current plans, estimates, projections, beliefs and opinions. Except as required by law, Edleun does not undertake any obligation to update forward-looking statements should assumptions related to these plans, estimates, projections, beliefs and opinions change.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs