Mr. Ian Kidson reports
ACASTA ENTERPRISES COMPLETES SALE OF JEMPAK AND REDUCTION OF ITS INDEBTEDNESS
Acasta Enterprises Inc. has completed the previously announced sale of JemPak Corp. to a wholly owned subsidiary
of Henkel AG & Co. KGaA.
"With the closing of this Transaction, Acasta has been able to
significantly reduce its indebtedness and reduce the associated cost of
borrowing on its remaining indebtedness," commented Ian Kidson, interim
chief executive of the company. "We would like to thank our lenders for
their constructive dialogue with us and assistance in implementing the
closing of the transaction."
The net proceeds from the transaction of approximately $115-million were
used primarily to pay down Acasta's indebtedness. Acasta has repaid
approximately $77.3-million ($59-million (U.S.)) under its $150-million
(U.S.) credit facility leaving only approximately $10-million (U.S.) in
indebtedness to WFI Inc., an entity controlled by Charles Wachsberg and Richard
In addition, Acasta has entered into an amending agreement with Canadian
Imperial Bank of Commerce whereby it remains as the only lender to
Apollo Health and Beauty Care Inc. in the amount of
approximately $58-million which is secured by a first ranking charge
over all property of Apollo as well as a pledge of all equity interests
and indebtedness of Apollo held by Acasta. As of the date hereof, the
company's aggregate indebtedness is approximately $74-million.
Canaccord Genuity Corp. served as financial adviser and Goodmans LLP
acted as legal counsel to Acasta, respectively.
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