Parkit Closes US$16,500,000 Refinancing
Vancouver, B.C., November 4, 2013 - Parkit Enterprise Inc. (the “Company”) (TSX-V: PKT) - is pleased to announce that on November 1st it closed a USD $16,500,000 refinancing of the Denver Canopy parking facility. The non-recourse, floating rate debt used to complete the recapitalization was provided by CapitalSource Bank, a wholly-owned subsidiary of CapitalSource Inc. (NYSE:CSE).
This refinancing relieves the Company from its previous high interest debt burden and improves the balance sheet considerably. All outstanding amounts owed by Parkit to Maxam Capital Corp. have been repaid, and Maxam has released all security. The Wells Fargo construction loan at the asset level has also been repaid.
Concurrent to this financing, the Company has issued a $300,000 six-month convertible debenture at 8% annualized interest comprised of 750,000 Units priced at $0.40 each. Each Unit consists of one common share and one common share purchase Warrant, each Warrant entitling the purchaser to purchase one common share at $0.40 each during the six month term of the debenture. The proceeds of the debenture are to be used for general working capital purposes.
Canopy continues to improve in occupancy and yield, and management anticipates meeting FY 2013 budgeted revenues of $7,500,000 and EBITDA of $2,600,000.
ON BEHALF OF THE BOARD
President and CEO
Parkit Enterprise Inc. acquires income-producing commercial real estate with a focus in the parking sector. Parkit built, owns and currently operates a 4,200 stall, LEED Gold certified parking facility at Denver International Airport with our partner Propark America. www.canopyairportparking.com & www.propark.com
Parkit intends to acquire, optimize and aggregate a diversified portfolio of parking facilities across North America. www.parkitenterprise.com
Parkit Enterprise Inc.
Suite 1088 – 999 West Hastings Street
Vancouver, British Columbia
Canada V6C 2W2
Tel. (604) 424-8700
For Investor Relations Contact:
Andrew Mugridge or Benjamin Curry
Tel. (604) 559-5573
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 news release.
Disclaimer for Forward-Looking Information
Certain statements in this release are forward-looking statements. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them.