Brampton Brick Ltd. reported that it has completed its previously announced new $40 million long-term financing. A portion of the proceeds of the new financing were utilized to repay a $22.5 million term loan and approximately $3.5 million in interest payments incurred for settling the term loan early. An amount of $12-$14 million will be used to assist with the purchase of the Atlas Block assets.

This transaction is expected to close on January 6, 2014. The balance of the Loan, if any, will be utilized for general corporate purposes. The term of the Loan is nine years with interest payments only for the first year.

Principal repayments commence in July 2015 at $500,000 per month in the months of July to November inclusive ($2.5 million per year) to 2022, and a balloon payment of $20 million in November 2022. The rate of interest is floating at the bank's prime rate plus a credit spread of 0.70% or at Banker's Acceptance rates plus a credit spread of 2.25%. The Company's credit spread is variable and determined by its interest coverage ratio.

The Loan also makes provision for an interest rate swap facility up to a face amount of $40 million. This will allow the Company to fix the interest rate on a portion of or the entire Loan amount. The Company anticipates that it will fix the interest rate on approximately half of the Loan amount.

The Loan is secured primarily by real estate and production equipment of the Company's Masonry Products and Landscape Products business segments in both Canada and the U.S.