Diamond Estates Wines and Spirits Announces New Credit Facilities with Bank of Montreal.

Posted Oct 2nd, 2017 in Press Releases

Diamond Estates Wines and Spirits Announces New Credit Facilities with Bank of Montreal.

Consolidation of debt results in reduced interest expense and increased financial capacity.

NIAGARA-ON-THE-LAKE, ON, Oct. 2, 2017 /CNW/ - Diamond Estates Wines & Spirits Inc. (the "Company" or "Diamond Estates") (http://www.diamondestates.ca) (TSXV: DWS), today announced that the Company has entered into a new credit facilities agreement (the "Facilities Agreement") with Bank of Montreal (the "Lender").

Under the Facilities Agreement, the Lender is providing Diamond Estates and its subsidiaries with a total of up to $30 million, including a $13.0 million revolving credit facility (the "Revolver") and a $10.0 million non-revolving term loan. The Agreement also provides for an additional delayed draw term loan of $2.5M, a $2.5M master lease facility and a $2.0 million accordion feature to the Revolver, exercisable by the Company subject to certain provisions. The Revolver and term loan mature in three years.

The Company retired a total of $18.5 million in revolving and term debt that was outstanding under loans from CIBC and Meridian Credit Union. The balance of the funds will be available as needed to fund capital expenditures and general corporate purposes. Diamond Estates expects the new financing to result in annualized interest savings of approximately $108,000.

"Bank of Montreal has just made a very strong show of support for Diamond Estates and our growth strategy," said Murray Souter, President and Chief Executive Officer. "With the financial capacity provided by these new credit facilities, we are well positioned to continue to execute against our plan."

About Diamond Estates Wines and Spirits Inc.
Diamond Estates Wines and Spirits Inc. is a producer of high quality wines and a sales agent for over 120 beverage alcohol brands across Canada.  The company operates two wineries in the Niagara region of Ontario producing VQA and blended wines under such well-known brand names as 20 Bees, EastDell Estates, Lakeview Cellars, Dois Amigos, Dan Aykroyd, Benchmark and Seasons. Through its subsidiary, Kirkwood Diamond Canada, the Company is the sales agent for top selling international brands in all regions of the country as well as being a distributor in the western provinces.  These recognizable brands include Fat Bastard wines from France, Kaiken wines from Argentina, Charles Wells beers from England, Hpnotiq Liqueur from France, Anciano wines from Spain, Francois Lurton wines from France and Argentina, Blue Nun wines from Germany, coolers and spirits from Independent Distillers in New Zealand, Brick Brewing from Canada, Evan Williams Bourbon from USA, Iceberg Vodka from Canada and many others. For further information on the company, please visit the company's SEDAR profile at www.sedar.com.

Forward Looking Statement
This press release contains forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "estimates", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved.  Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Diamond Estates Wines and Spirits Inc. to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this press release.  Such forward-looking statements are based on a number of assumptions which may prove to be incorrect, including, but not limited to: the economy generally; consumer interest in the services and products of the Company; financing; competition; and anticipated and unanticipated costs. While the Company acknowledges that subsequent events and developments may cause its views to change, the Company specifically disclaims any obligation to update these forward-looking statements. These forward-looking statements should not be relied upon as representing the views of the Company as of any date subsequent to the date of this press release. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Diamond Estates Wines & Spirits Inc.

For further information:

J. Murray Souter, President & CEO, Diamond Estates Wines & Spirits Inc., jmurraysouter@diamondwines.com, 905.641.1042 Ext 234;

Alan Stratton, CPA, CA, Chief Financial Officer, Diamond Estates Wines & Spirits Inc., astratton@diamondwines.com, 905.641.1042 Ext 225

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