Diamond Estates Wines & Spirits Inc. Enters Into Seventh Amendment to Its Second Amended and Restated Credit Agreement

Executive Summary

• Diamond Estates Wines & Spirits Inc. entered into a Seventh Amendment to its Second Amended and Restated Credit Agreement with Bank of Montreal, creating a $3.6 million “Bulge Amount” credit facility that matures no later than March 27 2026.
• The amendment adds a limited recourse guarantee from Lassonde Industries Inc. for the outstanding portion of the Bulge Amount and revises interest rates to Prime + 2.65% during the temporary bulge period and Prime + 2.40% thereafter.
• Management cites the new facility as support for the company’s ongoing financial turnaround, with Q2 results slated for release later in November.

Key Details

• Bulge Amount Credit Facility: $3,600,000; temporary period ends at the earlier of Diamond’s written request to cancel or March 27 2026.
• Limited Recourse Guarantee: Provided by Lassonde Industries Inc., covering up to the outstanding balance of the Bulge Amount under the RT Facility.
• Interest Rate Terms:
• Temporary Bulge Period – Prime Rate + 2.65%
• All other times – Prime Rate + 2.40%
• Purpose & Context: The amendment is presented as part of Diamond’s “financial turnaround,” referencing FY 2024/25 year‑end and Q1 results; Q2 results to be released toward the end of November 2025.
• Counterparties: Bank of Montreal (lender) and Lassonde Industries Inc. (guarantor).

Notable Quotes

“We want to thank Bank of Montreal for its ongoing support as Diamond continues its financial turnaround, as reflected in our Fiscal 2024/25 March 31 year end and Q1 results,” – Andrew Howard, President & CEO.