$8,000,000
December 5, 2016
MISSISSAUGA, ON, Dec. 5, 2016 /CNW/ – The Second Cup Ltd. (TSX: SCU) announced today that it has entered into a 4 year, $8 million secured term loan with SPE Finance LLC, an affiliate of Serruya Private Equity (SPE). Proceeds from the term loan will be used to repay the Company’s existing $6 million credit facility and for general corporate purposes.
This term loan carries an interest rate of 10% and includes warrants to purchase up to 600,000 common shares at a strike price of $2.75 per share. In addition, the Company has agreed to nominate a nominee from SPE to sit on its board of directors.
Capital Canada Limited acted as the exclusive financial advisor to Second Cup Ltd. in connection with raising term debt from SPE Finance LLC.
“We considered a number of alternatives along with the special committee and we are very pleased to have selected Serruya Private Equity,” said Ms. Barbara Mallon, Vice President of Finance and CFO. “This financing enhances our financial capacity to support the implementation of our strategic plan. The Serruya family has a tremendous track record in franchising and we look forward to benefiting from their expertise.”
“We are excited to be investing with Second Cup, an iconic Canadian brand” said Michael Serruya, Managing Director at SPE. “This investment capitalizes on our experience and we look forward to helping to build Second Cup in the future.”
The special committee has fulfilled its mandate and is no longer required. The Board of Directors will continue to pursue opportunities in the shareholders’ best interests.
About Second Cup Coffee Co.™
Founded in 1975, The Second Cup Ltd. is a Canadian specialty coffee retailer operating over 295 franchised and company-owned cafes. The company’s vision is to be the coffee brand most passionately committed to quality and innovation. For more information, please visit www.secondcup.com or find the company on Facebook and Twitter.
About Serruya Private Equity
Serruya Private Equity is a family office based in the Toronto area that oversees the investment activities in retail, real estate and lending for the Serruya family. For more information, visit www.serruyaprivateequity.com.