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Softchoice Term Facility Extended to March 31, 2009

Posted on: Tuesday, 23 December 2008, 16:47 CST

TORONTO, Dec. 23 /PRNewswire-FirstCall/ - Softchoice Corporation (TSX:SO) (Softchoice or "the Company") announced today that it has received an extension to March 31, 2009 of a term loan that is to be repaid from the proceeds of a new debt structure that the Company is in the final stages of negotiating with a syndicate of global financial institutions. The $45 million term loan was initially scheduled for repayment on December 31, 2008. This extension has also received the consent of the Company's existing ABL lender which recently amended its revolving credit facility to remove a condition that conflicted with the scheduled repayment of the term loan.

Management expects that both of these credit facilities will be replaced by a new credit structure comprised of an Asset Backed Lending (ABL) facility in the amount of C$120 million and a new subordinated term loan for C$25 million early in 2009.

"We believe that this new debt structure will provide the capacity and flexibility needed to support the Company's long term growth objectives" said Anne Brace, Softchoice's Chief Financial Officer.

About Softchoice

As one of North America's leading providers of technology solutions and services, Softchoice helps businesses and organizations of all sizes to select, acquire and manage their software and hardware technology resources. Softchoice offers a full range of capabilities, including face-to-face consultations and IT asset management services designed to help customers save time, money and risk in IT procurement. Softchoice currently has 973 employees operating from 45 branch offices located in major cities across the U.S. and Canada. Softchoice stock is listed on the Toronto Stock Exchange (TSX) under the trading symbol "SO." The Common Shares of Softchoice are not registered under the U.S. Securities Act of 1933 and are not publicly traded in the United States.

Forward-Looking Statements

This press release contains forward-looking statements that involve risks and uncertainties. These forward-looking statements relate to, among other things, the Company's intention to repay its outstanding term debt and other expectations, intentions and plans contained in this press release that are not historical fact. When used in this press release, the words "intend", "anticipate," "expect", "will' and similar expressions generally identify forward-looking statements. Statements reflecting Softchoice's current expectations are based upon the assumption that the Company will be successful in entering into new credit arrangements. These expectations are subject to a number of risks and uncertainties, including the current economic credit environment and other risks and uncertainties, many of which are set out or incorporated by reference in the Company's latest Annual Information Form. Due to the many risks and uncertainties, Softchoice cannot assure that the forward-looking statements contained in this press release will be realized.

SOURCE Softchoice Corporation

Source: PR Newswire

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