Press release from Marketwire
ENTREC Increases Senior Credit Facilities
Thursday, June 27, 2013
ENTREC Increases Senior Credit Facilities07:00 EDT Thursday, June 27, 2013
SPRUCE GROVE, ALBERTA--(Marketwired - June 27, 2013) - ENTREC Corporation (TSX VENTURE:ENT) ("ENTREC") today announced that it has increased its senior credit facilities with a syndicate of lenders led by Canadian Western Bank. The syndicate of lenders now includes Canadian Western Bank, The Bank of Nova Scotia, Canadian Imperial Bank of Commerce, The Toronto-Dominion Bank, Bank of Montreal, and National Bank of Canada.
"We are pleased to build on our existing strong relationships with our banking partners and welcome our newest partner, National Bank of Canada, into our lending syndicate," said Jason Vandenberg, ENTREC's Chief Financial Officer. "Although not required to complete our upcoming acquisition of GT's Crane and Transportation Services Inc. nor our 2013 capital expenditure program, this increase ensures we continue to have significant unutilized credit facilities available to provide ENTREC maximum financial flexibility on a go forward basis."
The credit facilities now consist of a $20 million operating facility (via account overdraft) and a $170 million revolving term facility (increased from $120 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 4.00%. The credit facilities are subject to compliance with financial covenants and are collateralized by substantially all of ENTREC's assets.
There is currently $63 million drawn under ENTREC's revolving term facility and the operating facility is largely undrawn. On a pro forma basis, ENTREC will have $100 million drawn under its revolving term facility once accounting for the cash portion of the upcoming GT's Crane and Transportation Services Inc. ("GT's") acquisition, leaving unutilized credit facilities available of approximately $90 million.
ENTREC is a leading provider of heavy lift and heavy haul services with offerings encompassing crane services, heavy haul transportation, engineering, logistics and support. ENTREC provides these services to the oil and natural gas, construction, petrochemical, mining and power generation industries. ENTREC's common shares trade on the TSX Venture Exchange under the trading symbol "ENT".
This press release contains forward-looking statements that reflect ENTREC's current beliefs and that are based on information currently available to ENTREC. These statements require ENTREC to make assumptions it believes are reasonable but, as a result of such assumptions, such forward-looking statements 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.
Examples of such forward-looking statements in this press release relate to, but are not limited to, ENTREC's expectation that the GT's acquisition will be completed. These forward-looking statements rely on certain expectations and assumptions, including, among others, that closing conditions to the acquisition of GT's are achieved.
Although ENTREC believes that the expectations and assumptions on which such forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because ENTREC can give no assurance that they will prove to be correct.
Readers are cautioned not to place undue reliance on these forward-looking statements, which are given as of the date hereof, and to not use such forward-looking statements for anything other than their intended purpose. ENTREC undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Chairman & CEO
John M. Stevens
President & COO