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."FORWARD-LOOKING STATEMENTS: 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.
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