Entreposage Montreal Mini-Storage, which operates 23 self-storage facilities in Quebec, Canada, has secured $185 million in revolving credit between a pair of financing deals. The company will use the capital to fund acquisitions and capital expenditures, refinance existing facility mortgages, and pursue other corporate projects, according to a press release.
A $150 million multi-tranche facility was obtained through a syndicate of underwriters led by The Bank of Nova Scotia Inc., with participation from Canadian Western Bank Inc. and HSBC Bank Inc. In addition, $35 million was secured through Roynat Capital, an affiliate of The Bank of Nova Scotia. The vehicles offer four-year terms, a two-year moratorium on principal and the potential for additional credit based on Entreposage’s earnings, the release stated.
“The success of this financing is a reflection on our long-term relationship with the financial institutions,” said Igor Bernadski, chief financial officer for Entreposage. “The two facilities working in tandem are very important on our path to achieving our strategic goals and in enhancing the company’s capital structure. Closing this transaction in the current, more constrained capital-market environment attests to the strong performance and resilience of the self-storage industry.”
“This achievement is a resounding vote of confidence in our strategy and our incredible team,” said Simon Berman, CEO of Entreposage. “Now, more than ever, we are positioned to rapidly take advantage of new opportunities to grow our portfolio and upgrade our facilities.”
Founded in 2004, Entreposage is a subsidiary of Avenir Properties, a Canadian real estate group that specializes in developing and managing commercial and industrial properties. The company’s self-storage portfolio comprises more than 10,000 units.