Mr. Matthew Rudd reports

LIQUOR STORES N.A. LTD. ANNOUNCES AMENDMENTS TO ITS CREDIT FACILITY

Liquor Stores N.A. Ltd. and its syndicated group of lenders have agreed to renew and amend the existing credit facility (1).

There were no changes to the pricing grid under which fees and interest fluctuate based on the corporation's funded-debt-to-EBITDA (earnings before interest, taxes, depreciation and amortization) ratio (2). Amendments to the existing credit facility include:

• The extension of the maturity date from Sept. 30, 2017, to Sept. 30, 2019;
• An increase in the total size of the credit facility to $165-million plus $15-million (U.S.) (previously $170-million plus $5-million (U.S.));
• The addition to the syndicated group of lenders of HSBC Bank USA NA, which will facilitate a more efficient cash management and borrowing structure for the company's U.S. operations;
• An increase in the fixed charge coverage ratio (2) covenant of greater than or equal to 1.05:1 commencing April 1, 2017 (from 1:1). The remaining financial covenants were unchanged.

The additional borrowing capacity in the United States will be used to finance new store construction and renovations.

(1) The existing credit facility is defined as the third amended and restated credit agreement dated June 30, 2015.

(2) Funded-debt-to-EBITDA ratio and fixed-charge-coverage ratio are non-international financial reporting standards measures that do not have any standardized meaning prescribed by IFRS. For more information on these non-IFRS measures, see the non-IFRS financial measures in the management discussion and analysis (MD&A) for the three and six months ended June 30, 2016, which is available on the company's website and on the SEDAR website.

We seek Safe Harbor.