Walton Big Lake Development L.P. Announces Amendments to Loan Facilities and Entering into Forbearance Agreements

CALGARY, Alberta--()--Walton Big Lake Development L.P. (the “Partnership”), and its general partner, Walton Big Lake Development Corporation (the “General Partner”), are pleased to announce that the Partnership has entered into amending agreements with its senior lender (the “Senior Lender”) for its senior loan facility (the “Senior Loan”) and its mezzanine lender (the “Mezzanine Lender”) for its mezzanine loan (the “Mezzanine Loan”). The amendments to the Senior Loan include, among others: (a) an extension of the maturity date from February 1, 2018 to November 1, 2018; (b) a reduction of the available loan amount by $1,700,000 due to anticipated construction cost savings; (c) an increase in the available letters of credit by $500,000; (d) a commitment to substantially complete development of the project by August 2018; and (e) payment of a loan extension fee (the “Senior Loan Amendments”). The amendments to the Mezzanine Loan include, among others: (a) an extension of the maturity date from January 1, 2018 to November 1, 2018; (b) an increase in the loan amount by $1,700,000 to an aggregate loan amount of $10,830,000 to fund interest reserves and loan amendment fees; and (c) payment of a loan amendment and placement fee (the “Mezzanine Loan Amendments” and together with the Senior Loan Amendments, the “Loan Amendments”).

Completion of the Loan Amendments and funding are subject to the Partnership fulfilling certain conditions, which the Partnership reasonably believes can be satisfied in the normal course.

The Senior Loan is secured by, among other things, a first mortgage charge over the project and first priority security interest in all present and after acquired personal property of the Partnership and the General Partner. In addition, the facilities will be guaranteed by Walton Global Investments Ltd. (“Walton Global”), an affiliate of the Partnership, limited to the amount of $19,000,000 plus interest and expenses along with a completion and cost overrun guarantee by Walton Global.

Under the terms of the Mezzanine Loan, Walton Global and Walton International Group Inc. (“Walton International”), an affiliate of the Partnership, have provided joint and several guarantees for the full amount of the loan plus interest and expenses.

In connection with the Loan Amendments, the Partnership has also entered into forbearance agreements with each of the Senior Lender and the Mezzanine Lender (the “Forbearance Agreements”). Under the terms of the Forbearance Agreements, the Senior Lender and the Mezzanine Lender have agreed to forbear on any events of default of the Partnership, Walton Global and WIGI that have occurred under the loans until November 1, 2018, being the revised maturity date of the loans under the Loan Agreements, or if there are occurrences of default under the Forbearance Agreements.

Additional Information

The Partnership is managed by Walton Asset Management L.P. and the development of the property is managed by Walton Development and Management LP, both of which are members of the Walton Group of Companies.

For more information about Walton Big Lake Development L.P., please visit www.sedar.com. For more information about Walton, visit www.Walton.com. For information about Hawk’s Ridge at Big Lake visit www.hawksridge.ca.

This news release, required by Canadian laws, does not constitute an offer of securities, and is not for distribution or dissemination outside Canada. This news release contains forward looking information regarding the Loan Amendments and the Forbearance Agreements, including the fulfilment of conditions thereto, and actual future results may differ from what is disclosed in this news release in the event those conditions are not met. The risks, uncertainties and other factors that could influence results are described in the prospectus and other documents filed with Canadian securities regulatory authorities and available online at www.sedar.com.

Contacts

For media inquiries, please contact:
Walton Big Lake Development L.P.
William Doherty
Office: 1-866-925-8668
info@walton.com

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