CALGARY, Alberta--(BUSINESS WIRE)--Walton Edgemont Development Corporation (the "Corporation") announced today that the maturity date of its $17.7 million interim bridge facility with a Canadian financial institution (the "Interim Bridge Facility") has been extended until May 1, 2017.
As at March 24, 2017, $11,530,092 and $4,616,500 was outstanding on the non-revolving demand loan and letter of credit segment of the Interim Bridge Facility, respectively. The Interim Bridge Facility is secured by a first charge demand collateral mortgage in the amount of $50 million on all present and after acquired property of the Corporation, including the Corporation’s approximately 201.5 acre "Edgemont" properties located in southwest Edmonton, Alberta (the "Properties").
The Interim Bridge Facility’s maturity date, which previously was January 1, 2017, has now been extended by the lender to May 1, 2017, at which time the loan will be required to be repaid. The Corporation has entered into a non-binding commitment letter with the lender with respect to a new credit facility (the "Phase 2 Facility") for the purposes of paying off the Interim Bridge Facility and funding Phase 2 costs to complete, costs of development of new lots for sale to builders and associated onsite and offsite infrastructure.
The Corporation is presently working with the lender to come to a formal agreement on the Phase 2 Facility, however there can be no assurances in that regard. In the event that the Phase 2 Facility does not proceed, the Corporation will need to find alternative financing to repay the Interim Bridge Facility. The Corporation believes that the lender will give it a reasonable amount of time to do so. Any default in the repayment of the Phase 2 Facility will entitle the lender to enforce its security on, and take possession of, the assets of the Corporation, including the Properties.
The Corporation is managed by Walton Asset Management L.P. and the development of the project is managed by Walton Development and Management LP, both of which are members of the Walton Group of Companies.
The Walton Group of Companies ("Walton") is a multinational real estate investment, planning, and development group concentrating on the research, acquisition, administration, planning and development of strategically located land in major North American growth corridors.
Walton has been in business for over 30 years and takes a long-term approach to land planning and development. Walton’s industry-leading expertise in real estate investment, land planning and development uniquely positions Walton to responsibly transition land into sustainable communities where people live, work and play.
Its communities are comprehensively designed in collaboration with local residents for the benefit of community stakeholders. Its goal is to build communities that will stand the test of time: hometowns for present and future generations.
This news release, required by Canadian laws, does not constitute an offer of securities, and is not for distribution or dissemination outside Canada. This news release contains forward looking information, and actual future results may differ from what is disclosed in this news release. The risks, uncertainties and other factors that could influence results are described in the prospectus and other documents filed with Canadian securities regulatory authorities and available online at www.sedar.com. Except as otherwise noted, all amounts are in Canadian dollars, and are based on unaudited financial statements for the three and six months ended September 30, 2016 and related notes, prepared in accordance with International Financial Reporting Standards.