ENTREC Increases Senior Credit Facilities
October 1, 2012
Spruce Grove, Alberta, Canada – ENTREC Corporation (“ENTREC” or the “Company”) is pleased to announce it has increased its senior credit facilities with a syndicate of lenders led by Canadian Western Bank. The syndicate of lenders now also includes Bank of Nova Scotia, the Canadian Imperial Bank of Commerce, the Toronto-Dominion Bank and the Bank of Montreal.
The credit facilities consist of a $20 million operating facility (via account overdraft) and a $120 million revolving term facility (increased from $75 million previously). The operating facility requires payments of interest only, while individual draws under the revolving term facility are repayable over a five year amortization period. The credit facilities mature on June 1, 2015.
Amounts borrowed under the credit facilities bear interest at the bank’s prime rate plus a credit spread based on a sliding scale. ENTREC’s current rate of interest on the credit facilities is 4.25%. The credit facilities are subject to compliance with financial covenants and are collateralized by substantially all of ENTREC’s assets. There is currently $64.3 million drawn under ENTREC’s revolving term facility. The $20 million operating facility is undrawn.
ENTREC will use the increased credit facilities to fund its capital expenditure program and for business acquisitions.
“We are pleased to build on our existing strong relationships with our banking partners and welcome our new partners Toronto-Dominion Bank and Bank of Montreal,” comments Jason Vandenberg, ENTREC’s Chief Financial Officer. “As we move forward into 2013, we expect to make significant investments in growing our base of cranes and heavy haul transportation equipment to serve the growing demand for our services.”
About ENTREC
ENTREC specializes in the lifting, transportation (over the road and on-site), loading, off-loading and setting of overweight and oversized cargo for the oil and gas, construction, petrochemical, mining and power generation industries. The common shares of ENTREC trade on the TSX Venture Exchange under the trading symbol "ENT".
Forward-looking statements
This press release contains forward-looking statements which reflect ENTREC’s current beliefs and are based on information currently available to ENTREC. These statements require ENTREC to make assumptions it believes are reasonable and are subject to inherent risks and uncertainties. Actual results and developments may differ materially from the results and developments discussed in the forward-looking statements as certain of these risks and uncertainties are beyond ENTREC's control.
For further information, please contact:
Rod Marlin – Chairman & CEO
Telephone: (780) 960-5647
John M. Stevens – President & COO
Telephone: (780) 960-5625
Jason Vandenberg – CFO
Telephone: (780) 960-5630
Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.