Softchoice Receives Extension on $45M Loan RepaymentBy Lawrence Walsh | Print
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Toronto-based Softchoice will have three additional months to repay a $45 million loan. Creditors are also restructing its credit line.
Softchoice, one of the largest software and services solution providers in North America, received an extension on its debt repayment plan, giving it an additional three months to settle the loan.
A Toronto-based company, Softchoice is in the final stages of negotiating a deal in which it wouldn’t have to repay $45 million that was originally scheduled for repayment on Dec. 31. Under the new plan, Softchoice will have until March 31, 2009 to repay the loan.
The new repayment plan includes a new debt structure for the company that includes $120 million (Canadian) in an asset-backed line of credit and a new $25 million (Canadian) short-term loan.
"We believe that this new debt structure will provide the capacity and flexibility needed to support the Company's long term growth objectives" said Softchoice CFO Anne Brace in a statement.
Softchoice, a publicly traded company on the Toronto Stock Exchange, operates 45 offices in the U.S. and Canada, and employees nearly 1,000 people. In 2007, the company reported revenues of $777 million (U.S.), a 10.5 percent increase over the previous year.