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Haig Service Corporation completes $1,625,000 credit facility with TD Banknorth
Green Brook, NJ

Adrienne Sherman
 

Haig Service Corporation completes $1,625,000 credit facility with TD Banknorth and closes restructured total asset purchase of Aerwav Integration, Inc.

Boston, commercial banking division facilitates $1,250,000 negotiated reduction in purchase price.

Green Brook, New Jersey, Sept. 1, 2008:  Haig Service Corporation, a leading provider of Fire and Secuirty Alarm Services, today announced that it has completed a $1,125,000 term loan facility and $500,000 revolving credit facility with TD Banknorth.  The placement brings to a close the 2 ½ year negotiated total asset purchase, fold-in, and turn-around of Aerwav, Integration, Inc in New Jersey and Florida.

Proceeds from the TD Banknorth term loan have been used to repay Haig’s existing TD term debt and revolving credit facility extending the maturity of both to five years, to extinguish the debt to the Chapter 7 Bankruptcy Estate liquidating the Aerwav assets, and to pay transaction and legal fees.  Proceeds from the $500,000 revolving credit facility, double the availability of Haig’s previous facility, are expected to be used for general corporate and working capital purposes.  “The completion of this financing transaction achieves the acquisition and integration of the recurring Fire Alarm Services contracts and operations of Aerwav in a way that both allows Haig Service to take advantage of a $1.25 Million reduction in the original purchase price, and strengthens our balance sheet considerably by shifting our debts from short to long term,” says President and CEO, Richard D. Haig, Jr.   

"We, as a 2nd generation company, were excited when we were told of TD Banknorth’s focus on well established family businesses by Kevin Malone, Regional Executive for TD.  Greg Spurr, Senior VP, Commercial Banking, paired brilliantly with TD’s due diligence provider, Benchmark Partners of Guilford, CT, to properly identify and quantify the lendable asset base of Recurring Revenue streams present in the unified entity,” said Haig, Jr.

“With this new banking relationship the Company can now shift it’s focus from managing short-term debt considerations to fulfilling their long-term financial objectives,” adds James Bourke, of Withum, Smith & Brown, the long time accounting firm advising Haig Service.

 The Recurring Revenue Contracts and cash flow streams considered for this asset based lending are very conservatively leveraged leaving considerable room to increase the credit facility.  “Increased leverage would allow Haig Service to extend our Brand into new U.S. markets and strengthen existing market shares through strategic acquisitions,” commented Haig’s CEO.  

About Haig Service Corporation:

Headquartered in New Jersey, Haig Service Corporation entered the Fire and Security Services industry in 1985.  On January 23, 2006 Haig bolstered their NJ market share and extended their brand to the Florida markets of Tampa, Orlando, and Fort Lauderdale with the asset purchase of Aerwav Integration Services / ArmorGroup Integrated Systems, a turnaround situation, of publicly-traded Armor Holdings.   Today, Haig Service Corporation is one of the nation's 100 Largest Fire and Security Alarm Services Companies and one of the 5000 Fastest Growing privately held companies in the US.*1   

 

About TD Banknorth:

 TD Banknorth is a leading banking and financial services company headquartered in Portland, Maine, and owned by TD Bank Financial Group of Toronto, Canada.  Following TD Bank Financial Group’s acquisition of Commerce Bancorp, Inc. on March 31, 2008, TD Banknorth and Commerce Bank merged to form TD Bank, N.A., one of the 20 largest commercial banking organizations in the United States with over $119 billion in assets, and provide customers with a full range of financial products and services at nearly 1,100 convenient locations from Maine to Florida.  TD Banknorth and Commerce Bank are trade names of TD Bank, N.A.  For more information, visit www.TDBanknorth.com and www.CommerceOnline.com. 

Contact:
Adrienne Sherman, Asst to the CEO
Haig Service Corporation
Phone: (800) 871-4244
Fax: (775) 878-7668



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