Acasta extends deadline to repay $25 million of credit facility

New York, March 1 – Acasta Enterprises Inc. said that it reached agreement with the lenders for its credit facility to extend the deadline to repay $25 million of the borrowings.

The amount is now due on March 7 instead of March 1, as previously, according to a news release.

Funds for the repayment of the credit facility will come from the sale of Stellwagen Group Ltd.

Definitive documents are still being finalized, Acasta said, and the extension will allow the sale process to be completed.

On Feb. 6 Acasta said it paid down $5 million of the $120 million that was outstanding under its $150 million credit agreement.

At that time the company also agreed to repay an additional $25 million of the credit facility by March 1, to be funded by proceeds from Acasta’s sale of its Stellwagen business unit to an affiliate of Martello, the previous owner of Stellwagen, in exchange for the cancellation of 26 million common shares of Acastas beneficially owned by Martello and $35 million of cash.

Toronto-based Acasta is a special purpose acquisition corporation.

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