Diamond amends credit agreement, grants 198,439 DSUs

Executive Summary

• Diamond Estates Wines & Spirits Inc. entered into the eighth amendment to its Second Amended and Restated Credit Agreement (SARCA) with Bank of Montreal, extending the maturity date to July 31, 2026, and removing the limited recourse guarantee from Lassonde Industries Inc. following the repayment of the bulge amount.
• The company issued 198,439 Deferred Share Units (DSUs) to non-executive directors to settle $31,750 in deferred compensation, with settlement occurring upon the directors' retirement.
• The company announced it will release its audited financial statements for the year ended March 31, 2026, in late June or early July 2026.

Key Details

• Credit Agreement Amendment (SARCA):
  • Counterparty: Bank of Montreal.
  • Maturity Date: Extended to July 31, 2026.
  • Interest Rates: Unchanged from the previous amendment.
  • Guarantee Removal: The limited recourse guarantee previously granted by Lassonde Industries Inc. in favor of BMO has been removed because the "bulge amount" has been fully repaid by Diamond Estates.
• Deferred Share Unit (DSU) Issuance:
  • Date of Grant: March 31, 2026.
  • Quantity: Aggregate of 198,439 DSUs issued.
  • Deemed Price: 16 cents per DSU.
  • Total Value: $31,750 in deferred directors compensation settled.
  • Recipients: Non-executive directors (excluding Vince Timpano and Guy Blanchette, who renounced compensation as nominees of Lassonde).
  • Settlement Terms: DSUs are to be settled in common shares of the company when the director retires from all positions with the company.
• Financial Reporting Schedule:
  • Period: Year ended March 31, 2026.
  • Release Window: Late June/early July 2026, following the completion of the audit.

Notable Quotes

• "We want to thank Bank of Montreal for its ongoing support as Diamond continues its financial turnaround," said Andrew Howard, president and chief executive officer of Diamond.