TORONTO, Dec. 14, 2018 /CNW/ - Brookfield Real Estate
Services Inc. (TSX: BRE) (the "Company"), a leading provider
of services to residential real estate brokers and their
REALTORS®1 today announced it has completed its
amended finance arrangements with the Canadian Imperial Bank of
Commerce, as originally announced on November 7, 2018. The amended and restated
arrangements are effective from January 1,
2019.
The main amendments to the Debt Facilities include:
- An extension of the committed Debt Facilities to December 31, 2023.
- An increase in the maximum borrowings under the Debt Facilities
from $78 million to $80 million.
- A reduction in the required EBITDA (as defined in the Debt
Facilities agreement) to interest coverage ratio from 5.0 times to
3.0 times.
- An increase in the permitted level of borrowings from 2.5 times
EBITDA to 4.0 times.
- The obligation to make limited principal repayments under the
Debt Facilities in circumstances where borrowings exceed 3.4 times
EBITDA.
There are no significant changes to the security arrangements or
interest arrangements associated with the Debt Facilities as a
result of these amendments.
FORWARD-LOOKING STATEMENTS
This news release contains forward-looking information and other
"forward-looking statements". Words and other expressions that are
predictions of or could indicate future events and trends and that
do not relate to historical matters identify forward-looking
statements. Reliance should not be placed on forward-looking
statements because they involve known and unknown risks,
uncertainties and other factors that may cause the actual results,
performance or achievements of the Company to differ materially
from anticipated future results, performance or achievement
expressed or implied by such forward-looking statements. Factors
that could cause actual results to differ materially from those
indicated in the forward-looking statements include: changes in the
Company's strategy with respect to dividends, changes in the supply
of houses for sale in Canada or in
any particular region within Canada, changes in the demand for houses in
Canada or any particular region
within Canada, changes in general
economic conditions (including interest rates, consumer confidence
and other general economic factors or indicators), changes in
global and regional economic growth, the demand for and prices of
natural resources on local and international markets, the level of
residential real estate transactions, the availability of
attractive investment opportunities, the average rate of
commissions charged, competition from other real estate brokers or
from discount and/or Internet-based real estate alternatives, the
closing of existing real estate brokerage offices, other
developments in the residential real estate brokerage industry or
the Company that could reduce the number of
REALTORS® in the Company's Network or royalty
revenue from the Company's Network, our ability to maintain brand
equity through the use of trademarks, the methods used by
shareholders or analysts to evaluate the value of the Company and
its publicly traded securities, the availability of equity and debt
financing, changes in tax laws or regulations, changes in the
corporate structure of the Company or its affiliates, demand for
the services the Company provides to REALTORS ® , and
other risks detailed in the Company's annual information form,
which is filed with securities commissions and posted on SEDAR
at www.sedar.com. The Company undertakes no obligation to
publicly update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise, except
as required by law.
About Brookfield Real Estate Services Inc.
Brookfield Real Estate Services Inc. is a leading provider of
services to residential real estate brokers and a network of over
18,000 REALTORS®1. We operate in Canada under the Royal LePage, Via Capitale
and Johnston & Daniel brands. For more information, go to
www.Brookfieldresinc.com.
Brookfield Real Estate Services Inc. is an affiliate of
Brookfield Business Partners, a business services and industrials
company focused on owning and operating high-quality businesses
that benefit from barriers to entry and/or low production
costs. Brookfield Business Partners is listed on
the New York and Toronto stock exchanges.
Further information is available
at https://bbu.brookfield.com.
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1
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REALTORS® is a trademark identifying
real estate licensees in Canada who are members of the Canadian
Real Estate Association.
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SOURCE Brookfield Real Estate Services Inc.