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K-Bro’s New Upsized Syndicated Credit Facility

K-Bro Linen Inc., Edmonton, Alberta, Canada, announced that it has entered into a three-year, $175 million committed, syndicated revolving credit facility, according to a news release.

“We are pleased to announce our new upsized syndicated Credit Facility with TD and the other syndicate lenders, which will provide us with further financial flexibility to pursue our organic growth and potential M&A opportunities.” said Linda McCurdy, president and chief executive officer at K-Bro.

“Strategic acquisitions of high-quality operators continue to be an important contributor to K-Bro’s overall growth profile. We have an active M&A pipeline and remain well positioned from a balance sheet and liquidity perspective and will continue to be disciplined as we evaluate acquisitions,” said McCurdy.

The Toronto-Dominion Bank (TD) is acting as lead arranger, sole bookrunner, and administrative agent, with National Bank of Canada and Canadian Western Bank as lenders with TD. The Credit Facility replaces K-Bro’s existing $125 million revolving credit facility with TD.

Under the terms of the Credit Facility, the Lenders will provide K-Bro with a $175 million committed revolving credit facility, inclusive of a $15 million swingline. There is also an additional uncommitted accordion for up to $75 million. The Credit Facility matures on March 26, 2027.

K-Bro is an owner and operator of laundry and linen processing facilities in Canada and a market leader for laundry and textile rental services in Scotland and the North of England. K­­­‑Bro and its wholly-owned subsidiaries operate across Canada and the UK, providing a range of linen services to healthcare institutions, hotels and other commercial accounts that include the processing, management and distribution of general linen and operating room linen.

The Corporation’s operations in Canada include ten processing facilities and two distribution centres under two distinctive brands: K‑Bro Linen Systems Inc. and Buanderie HMR. The Corporation operates in ten Canadian cities: Québec City, Montréal, Toronto, Regina, Saskatoon, Prince Albert, Edmonton, Calgary, Vancouver and Victoria.

The Corporation’s operations in the UK include Fishers, which was acquired by K‑Bro on November 27, 2017. Fishers was established in 1900 and is a leading operator of laundry and linen processing facilities in Scotland, providing linen rental, workwear hire and cleanroom garment services to the hospitality, healthcare, manufacturing and pharmaceutical sectors. The Corporation operates five UK sites located in Cupar, Perth, Newcastle, Livingston and Coatbridge.