MONTREAL, Oct. 19, 2023 /CNW/ – ENTREPOSAGE MONTRÉAL MINI-STORAGE("MMS" or the "Company") announced that it has successfully secured a Multi-Tranche Revolving Credit Facility ("Syndicated Facility") in partnership with a syndicate of underwriters led by The Bank of Nova Scotia Inc. (”Scotiabank") as the agent and including HSBC Bank Canada. and Canadian Western Bank Inc. The Syndicated Facility totals $150 million, divided into multiple tranches, with one allocated for the refinancing of existing mortgages, another reserved for future growth and acquisition opportunities, and a third revolving facility designated for general corporate purposes.
In conjunction with this transaction, the Company has also secured separate financing of $35 million from Scotiabank affiliated, Roynat Capital ("Roynat"). The Roynat revolving facility will be used to stabilize properties and fund construction capital expenditures.
The aggregate sum of this financing totals $185 million with a four-year term, two years of principal moratorium and additional credit availability through an accordion based on MMS’ growing earnings. Igor Bernadski, the Company’s CFO expressed "the success of this financing is a reflection on our long-term relationship with the financial institutions. The two facilities working in tandem are very important on our path to achieving our strategic goals and in enhancing The Company’s capital structure. Closing this transaction in the current, more constrained capital market environment attests to the strong performance and resilience of the self-storage industry." Simon Berman, the Company CEO, added "this achievement is a resounding vote of confidence in our strategy and our incredible team. Now, more than ever, we are positioned to rapidly take advantage of new opportunities to grow our portfolio and upgrade our facilities. We are incredibly grateful to our advisors and to Scotiabank who share our belief that this is only the very beginning of MMS’ growth story."
In connection with the financing process, Montreal Mini-Storage was represented by Fasken Martineau DuMoulin LLP. Blakes, Cassels & Graydon LLP and Dentons LLP served as the legal advisors for the lending groups; Alvarez and Marsal Canada Securities ULC acted as the Company’s financial advisor.
About Entreposage Montreal Mini-Storage: Since 2004, Entreposage Montreal Mini-Storage has taken pride in providing space for your stuff. The company owns and operates more than 10,000 self-storage units at more than 20 conveniently located facilities in Quebec and is the province’s largest self-storage brand trusted by over 60,000 satisfied customers. Entreposage Montréal Mini-Storage is a subsidiary of Avenir Properties, a Canadian real-estate group focused on developing and managing impactful industrial and commercial projects.
SOURCE Montreal Mini-Storage
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