CALGARY, Dec. 20, 2018 /CNW/ - Cervus Equipment Corporation ("Cervus" or the "Company") (TSX: CERV) is pleased to announce that it has entered into an amended and extended revolving committed credit facility (the "Facility") with its existing syndicate of underwriters led by The Toronto Dominion Bank and including Canadian Imperial Bank of Commerce and Wells Fargo.  The principal amount available under the extended credit Facility has increased to $120 million from $100 million, while the $80 million accordion provision remains available under the extended Facility. The Facility was extended under a four year term, now maturing December 19, 2022, compared to maturity of December 19, 2019 prior to extension.

"We are pleased with the four year committed renewal and $20 million increase to the Syndicated Credit Facility, and particularly pleased in the relationships with our lenders," said Adam Lowther, Chief Financial Officer of Cervus.  "The Facility has been a cost effective and flexible component of our capital structure, providing on demand financing for both working capital and growth opportunities."

The Company's cost of borrowing under the Facility remains indexed to prime or LIBOR (the "reference rate"), at the Company's option at time of borrowing. The extended Facility reduces the incremental interest pricing above the reference rate, improving the Company's cost of borrowing under the Facility, while the primary financial covenants remain unchanged.  The principal purpose of this Facility is to finance Cervus' general corporate operating requirements, including capital expenditures.  As of the date hereof, approximately $27.4 million has been drawn on the facility.

About Cervus Equipment Corporation
Cervus acquires and operates authorized agricultural, transportation and materials handling equipment dealerships. The Company has interests in 63 dealerships in Canada, New Zealand, and Australia, employing more than 1,500 people. The primary equipment brands represented by Cervus include John Deere agricultural equipment; Peterbilt transportation equipment; and Clark, Sellick, Doosan and JLG material handling equipment. The common shares of Cervus are listed on the Toronto Stock Exchange and trade under the symbol "CERV".

The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this release.

SOURCE Cervus Equipment Corporation

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