QUEBEC, Nov. 27 /PRNewswire-FirstCall/ -- Cossette Communication Group Inc. ("Cossette" or the "Company") announced today that it has successfully closed credit facilities of $96 million.
This new facility replaces the previous facility of $50 million. The facility is in the form of a three-year evergreen revolver of up to $90 million at an interest rate varying between prime rate and prime rate plus 0.5%, or between 1.25% and 2.125% above bankers acceptance rate, depending on the level of the senior debt to EBITDA ratio, and other facilities totalling $6 million. The banking syndicate is comprised of two Canadian financial institutions: Bank of Montreal (lead) and National Bank of Canada.
"We are very pleased with this new agreement because it shows the confidence financial institutions have in our capacity to manage our operations in the current challenging economic environment" said Claude Lessard, Chairman, Chief Executive Officer and President. "This credit facility will allow us to meet our performance-based earn-out payments and put obligations while continuing to look at acquisitions that specifically meet our long-term criteria," he concluded.
Cossette Communication Group Inc. offers a full range of leading-edge communication services to clients of all sizes, including some of the most prestigious brands in the world. A customer-driven organization built around highly specialized business units, Cossette also offers Convergent CommunicationsTM, a unique working method that brings added value to the client by integrating various services offered by the Group, including strategic planning and research, advertising, media buying and channel planning, sales promotion, direct response, database and direct marketing, customer relationship management, interactive marketing and technology solutions, public relations, organizational communication and change management, sponsorship and alliance marketing, branding and design, ethnic marketing, business-to-business communications (B2B practices) and print and video production. Cossette has approximately 1,630 employees and offices in Quebec City, Montreal, Toronto, Vancouver, Halifax, New York, Irvine, Los Angeles, London, Moscow and Shanghai.
Forward-looking statements - This press release is not an offer of securities for sale. It may contain forward-looking statements concerning the Company's business, operations and strategies, including forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 in the United States.The Company cautions that, by their nature, forward-looking statements involve risks and uncertainties and the Company's actual results may differ materially from those expressed or implied in such statements, due to a variety of factors including downturns in general economic conditions and resulting changes in client business and marketing strategies, consolidation and globalisation of client brand strategies, the highly competitive nature of the communications industry, the greater resources available to much larger global agencies, low entry barriers for new competitors, dependence upon a limited number of clients contributing a significant percentage of income, inability to acquire new clients or new assignments from existing clients due to client policies prohibiting performance of similar services for competing products or companies, our ability to successfully integrate our acquired and to-be-acquired businesses and the retention of key management, creative and technical personnel. Reference should be made to the most recent annual Management's Discussion and Analysis for an in-depth description of major risk factors. The Company assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason, unless required by applicable laws. In the event the Company does update any forward-looking statements, no inference should be made that the Company will make additional updates with respect to that statement, related matters, or any other forward-looking statement.
