Colabor Group secures C$15M loan from Fonds de solidarité FTQ to repay remaining principle on debentures issued Jan. 4, 2007; balance of loan will be for company's working capital

BOUCHERVILLE, Quebec , December 28, 2011 (press release) – Colabor Group Inc. (TSX: GCL) ("Colabor" or the "Company") is pleased to announce that it has entered into a loan agreement with Fonds de solidarité FTQ ("Fonds") governing the terms and conditions of a $15,000,000 unsecured subordinated loan. The proceeds of the loan will be used in part to repay the remaining principal of $10,028,000 on the convertible unsecured subordinated debentures issued on January 4, 2007, bearing interest at an annual rate of 7% and maturing on December 31, 2011. The balance will be allocated to the Company's working capital.

This subordinated loan is unsecured and unconvertible and bears interest at 6.5% per annum payable semi-annually. The balance of the loan is repayable in a single payment on February 28, 2017 and may be prepaid at the Company's option in certain circumstances, subject to payment of a premium by the Company.

"We are happy to count on the Fonds' support. This financing shows their confidence in Colabor and in its ability to seize profitable business opportunities. Moreover, this source of funds further increases our financial flexibility so that we can pursue our growth strategy," said Michel Loignon, Vice-President and Chief Financial Officer of Colabor.

"We are delighted to add Colabor Group, a pillar of the food product distribution industry in Quebec, to our portfolio of partner companies. Supported by a strong management team, this company has carried out several acquisitions over the past few years, leading it to grow significantly. Our financial intervention should contribute to maintaining their growth," pointed out Janie Béïque, Senior Vice-President, Natural Resources, Industries and Consumer Products of Fonds de solidarité FTQ.


Colabor is a wholesaler and distributor of food and non-food products serving the retail market (grocery stores, convenience stores, etc.) and the foodservice market (cafeterias, restaurants, hotels, restaurant chains, etc), in Quebec, Ontario and the Atlantic provinces.


The Fonds de solidarité FTQ helps drive our economy. With net assets of $8.2 billion as at May 31, 2011, the Fund is a development capital investment fund that channels the savings of Quebecers into investments in all sectors of the economy to help further Québec's economic growth. The Fund is a partner, either directly or through its network members, in 2,129 companies. With its 583,235 owner-shareholders, it has helped, on its own or with other financial partners, to create, maintain and protect 160,789 jobs.

* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistrubte or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.