CALGARY, Alberta--(BUSINESS WIRE)--Walton Westphalia Development Corporation (the “Corporation”) announces that it has successfully negotiated an extension to the terms of the non-revolving, US$27,000,000 senior loan agreement (the “New Senior Loan”), originally entered into on November 30, 2018, between the third party lender (the “Senior Lender”),and Walton Westphalia Development Corporation (USA) LLC, the Corporation’s wholly owned subsidiary, and Walton Westphalia Europe LP as borrowers (the “Borrowers”).
The extension to the New Senior Loan was sought by the Borrowers to facilitate the timing of the proposed closing of the bulk sale of land in Phase 1A of the Westphalia property project (the “Phase 1A Sale”), which is proposed to close on January 27, 2020.
The Senior Lender agreed to extend the maturity date of the New Senior Loan from November 30, 2019 to March 31, 2020. Upon acceptance of the extension, the Borrowers agreed to pay an extension fee of US$70,000 to the Senior Lender. The Borrowers also agreed to pay the Senior Lender an agreed upon amount from the proceeds from the Phase 1A Sale, toward the amount drawn on the New Senior Loan, by no later than January 31, 2020.
The Corporation is managed by Walton Global Investments Ltd. and the development of the project is managed by Walton Development & Management (USA), Inc., both of which are members of the Walton Group of Companies.
The Walton Group of Companies are privately owned, leading global real estate investment, land asset management and administration companies that have focused on strategically located land in major growth corridors for over 40 years. The company manages and administers US$3.8 billion of real estate assets in North America, on behalf of its investors and business partners. Walton has more than 106,000 acres of land under ownership, management and administration in the United States and Canada. Key entities in the Walton Group of Companies include Walton Global Investments, Walton Global Holdings, Walton International Group and Walton Development and Management. For more information visit Walton.com.
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. Forward-looking information is based on the current expectations, estimates and projections of the Corporation at the time the statements are made. They involve a number of known and unknown risks and uncertainties which would cause actual results or events to differ materially from those presently anticipated. The risks, uncertainties and other factors that could cause the Corporation's actual results and performance in future periods to differ materially from the forward looking information contained in this news release include, among other things, extension of the existing loans, the timing of the closing of the sale of Phase 1A, the price at which Phase 1A can be sold, general economic and market factors, including interest rates, a decline in the real estate market, changes in government policies and regulations or in tax laws, changes in municipal planning strategies and whether certain development approvals are obtained and changes in the Canadian/U.S. dollar exchange rate, in addition to those factors discussed or referenced in documents filed with Canadian securities regulatory authorities and available online at www.sedar.com.