TORONTO, Oct. 27, 2014 Brookfield Real Estate Services
Inc. (the "Company") (TSX – BRE), today announced the
closing of a five-year $68 million
financing with CIBC Business Banking, comprising the following
three arrangements:
- A $53 million non-revolving term
fixed rate facility, replacing the current $53 million term facility which was to mature on
February 17, 2015. The new facility
bears a variable interest rate of Banker's Acceptances (BAs) +1.70%
or Prime + 0.5%, which the company has swapped to a fixed rate of
3.64%, payable monthly.
- A $10 million non-revolving
acquisition facility to support acquisitions pursued by the
Company, bearing a variable interest rate of BAs +1.70% or Prime +
0.5%. A standby fee of 0.15% applies on undrawn amounts under this
facility.
- A $5 million revolving
operating facility to meet the Company's day-to-day operating
requirements, bearing a variable interest rate of BAs +1.70%
or Prime + 0.5%
"We are extremely pleased with the completion of this financing
and the high level of confidence that our partners at CIBC Business
Banking have shown in our business. Fixing our debt at an
attractive fixed interest rate provides our Company with a low cost
of funds through maturity, while the addition of the $10 million acquisition line provides additional
capacity to fund our growth initiatives," said Phil Soper, President and Chief Executive,
Brookfield Real Estate Services Inc.
Brookfield Real Estate Services Inc. Profile
The
Company is a leading provider of services to residential real
estate brokers and their REALTORS®. The Company generates cash flow
from franchise royalties and service fees derived from a national
network of real estate brokers and agents in Canada operating under the Royal LePage, Via
Capitale Real Estate Network and Johnston & Daniel brand names.
At June 30, 2014, the Company network
consisted of 15,697 REALTORS®. The Company network has
approximately one fifth share of the Canadian residential resale
real estate market based on 2013 transactional dollar volume. The
Company generates both fixed and variable fee components. Variable
fees are primarily driven by the total transactional dollar volume
from the sales commissions of REALTORS®, while fixed fees are based
on the number of agents and sales representatives in the network.
Approximately 71% of the Company's revenue is based on fees that
are fixed in nature; this provides revenue stability and helps
insulate the Company's cash flows from market fluctuations. The
Company is listed on the TSX and trades under the symbol "BRE". For
further information about the Company, please visit
www.brookfieldresinc.com.
SOURCE Brookfield Real Estate Services Inc.