Acasta Enterprises Announces That Stellwagen Enters into U.S.$250 Million Revolving Credit and Security Agreement

Dec 05, 2017 07:29 pm

Acasta Enterprises Inc. (TSX:AEF) (“Acasta” or the “Company”) is pleased to announce that a subsidiary of Stellwagen Group Limited (“Stellwagen”) has entered into a revolving credit and security agreement (the “Credit Agreement”) with Morgan Stanley Asset Funding Inc. (“Morgan Stanley”) in the principal amount of up to U.S.$250 million. The Credit Agreement is secured by the portfolio of loans originally made by Stelloan Investment Company I DAC (“Stelloan”) to various aircraft lessors (the “Stelloan Portfolio”). To date, Stellwagen has drawdown approximately U.S.$110 million under the Credit Agreement based upon the initial collateral base provided by the Stelloan Portfolio.

The proceeds from the Credit Agreement will be used to support Stellwagen’s ongoing initiatives, including the financing of growth opportunities, expanding the Stelloan Portfolio and repaying certain existing indebtedness of Stelloan.

“The Credit Agreement provides Stellwagen with additional capital to support its existing core business platforms and execute its growth strategy,” commented Anthony Melman, Chief Executive Officer of Acasta. “We are pleased to partner with Morgan Stanley and appreciate their confidence in Stellwagen’s business.”

The Credit Agreement contains customary representations, warranties and covenants.

About Acasta Enterprises Inc.

Acasta Enterprises Inc. is a Canadian public company that acquires businesses with exceptional potential for value creation through strategic and transformational initiatives. As a proactive private equity manager, Acasta partners with the senior management teams of its acquired businesses, empowering them to pursue value creating trajectories.


Cautionary Note Concerning Forward Looking Statements

This news release may include forward looking statements. All such statements constitute forward looking information within the meaning of applicable securities law and are made pursuant to the “safe harbour” provisions of applicable securities laws. Forward looking statements may include, but are not limited to, statements about anticipated future events or results, including comments with respect to Company’s future business operations, financial performance and condition. Forward looking statements are statements that are predictive in nature, depend upon or refer to future events or conditions and are identified by words such as “will”, “expects”, “anticipates”, “intends”, “plans”, “believes”, “estimates” or similar expressions concerning matters that are not historical facts. Such statements are based on current expectations of the Company’s management and inherently involve numerous risks and uncertainties, known and unknown, including economic factors. The forward looking information contained in this news release is presented for the purpose of assisting readers in understanding the Company’s business and strategic priorities and objectives as at the periods indicated and may not be appropriate for other purposes.

A number of risks, uncertainties and other factors may cause actual results to differ materially from the forward looking statements contained in this news release, including, among other factors, those referenced in the section entitled “Risk Factors” in the Company’s annual information form for the year ended December 31, 2016, a copy of which is available on the SEDAR website at under the Company’s profile.

Forward looking statements contained in this news release are not guarantees of future performance and, while forward looking statements are based on certain assumptions that the Company considers reasonable, actual events could differ materially from those expressed or implied by forward looking statements made by the Company. Readers are cautioned to consider these and other factors carefully when making decisions with respect to the Company and to not place undue reliance on forward looking statements. Circumstances affecting the Company may change rapidly. Except as may be expressly required by applicable law, Acasta does not undertake any obligation to update publicly or revise any such forward looking statements, whether as a result of new information, future events or otherwise. These cautionary statements expressly qualify all forward looking statements in this new release.


All financial information is presented in Canadian dollars, except as otherwise indicated.

Acasta Enterprises Inc.
Ian Kidson, 1-647-725-6707
Chief Financial Officer and Chief Operating Officer