Ms. Linda McCurdy reports

K-BRO ANNOUNCES NEW UPSIZED SYNDICATED CREDIT FACILITY

K-Bro Linen Inc. has entered into a three-year $175-million committed syndicated revolving credit facility. Toronto-Dominion Bank is acting as lead arranger, sole bookrunner and administrative agent, with National Bank of Canada and Canadian Western Bank as lenders. The credit facility replaces K-Bro's existing $125-million revolving credit facility with TD.

Under the terms of the credit facility, the lenders will provide K-Bro with a $175-million committed revolving credit facility, inclusive of a $15-million swing line. There is also an additional uncommitted accordion for up to $75-million. The credit facility matures on March 26, 2027.

"We are pleased to announce our new upsized syndicated credit facility with TD and the other syndicate lenders, which will provide us with further financial flexibility to pursue our organic growth and potential [merger-and-acquisition] opportunities," said Linda McCurdy, president and chief executive officer at K-Bro. "Strategic acquisitions of high-quality operators continue to be an important contributor to K-Bro's overall growth profile. We have an active M&A pipeline and remain well positioned from a balance sheet and liquidity perspective, and will continue to be disciplined as we evaluate acquisitions."

About K-Bro Linen Inc.

K-Bro is the largest owner and operator of laundry and linen processing facilities in Canada and a market leader for laundry and textile rental services in Scotland and the North of England. K-Bro and its wholly owned subsidiaries operate across Canada and the United Kingdom, providing a range of linen services to health care institutions, hotels and other commercial accounts that include the processing, management and distribution of general linen and operating room linen.

The corporation's operations in Canada include 10 processing facilities and two distribution centres under two distinctive brands: K-Bro Linen Systems Inc. and Buanderie HMR. The corporation operates in 10 Canadian cities: Quebec City, Montreal, Toronto, Regina, Saskatoon, Prince Albert, Edmonton, Calgary, Vancouver and Victoria.

The corporation's operations in the U.K. include Fishers, which was acquired by K-Bro on Nov. 27, 2017. Fishers was established in 1900 and is a leading operator of laundry and linen processing facilities in Scotland, providing linen rental, workwear hire and clean room garment services to the hospitality, health care, manufacturing and pharmaceutical sectors. The corporation operates five U.K. sites located in Cupar, Perth, Newcastle, Livingston and Coatbridge.

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