Horizon North Logistics Inc. Announces Amendment and Extension of Credit Facility
CALGARY , Oct. 3, 2019 /PRNewswire/ - Horizon North Logistics Inc. ("Horizon North" or the "Corporation") (TSX: HNL.TO) announced today that the Corporation recently reached an agreement with its lenders to amend its credit facility. Among other things, the amended agreement:
- Maintains the existing revolving commitment of $150 million ;
- Extends the maturity date of the credit facility by 12 months to September 30, 2021 ;
- Adjusts the permitted senior debt to consolidated adjusted EBITDA ratio to a maximum of 4.25x for the third quarter of 2019, 5.25x in the fourth quarter of 2019, 4.50x in the first quarter of 2020, 3.75x in the second quarter of 2020, 3.50x in the third quarter of 2020 and 3.00x in the fourth quarter of 2020 and thereafter; and
- Adjusts the permitted total debt to consolidated adjusted EBITDA ratio to a maximum of 4.25x for the third quarter of 2019, 5.25x in the fourth quarter of 2019, 4.50x in the first quarter of 2020 and 4.25x in the second quarter of 2020 and thereafter.
The credit facility provides access to liquidity and borrowing capacity for the operating and capital requirements of the Corporation as required.
About Horizon North
Horizon North is a publicly listed corporation (TSX: HNL.TO) providing a full range of industrial, commercial, and residential products and services. Our Industrial Services business supplies workforce accommodations, camp management services, access solutions, maintenance and utilities. Our Modular Solutions business integrates modern design concepts and technology with state of the art, off-site manufacturing processes; producing high quality building solutions for commercial and residential offerings including offices, hotels, and retail buildings, as well as distinctive single detached dwellings and multi-family residential structures. As a result of our diverse product and service offerings, Horizon North is uniquely positioned to meet the needs of our customers in numerous sectors, anywhere in Canada .
Additional information related to Horizon North, including the Corporation's annual information form, press releases, financial statements and MD&A are available on SEDAR at www.sedar.com
This news release contains certain statements or disclosures relating to Horizon North that are based on the expectations of its management as well as assumptions made by and information currently available to Horizon North which may constitute forward-looking statements or information ("forward-looking statements") under applicable securities laws. All such statements and disclosures, other than those of historical fact, which address activities, events, outcomes, results or developments that Horizon North anticipates or expects may, could or will occur in the future (in whole or in part) should be considered forward-looking statements. In some cases, forward-looking statements can be identified by the use of the words "anticipate", "continue", "expect", "forward", "opportunity", "will" and similar expressions. In particular, but without limiting the foregoing, this news release contains forward-looking statements pertaining to the amount of the credit facility, the maturity date of the credit facility, the adjustments to the senior debt to consolidated adjusted EBITDA ratio and the permitted total debt to consolidated adjusted EBITDA ratio (the "Debt Ratios") and the timing thereof.
The forward-looking statements contained in this news release reflect several material factors and expectations and assumptions of Horizon North including, without limitation: that Horizon North will maintain compliance with the permitted Debt Ratios; Horizon North will continue to conduct its operations in a manner consistent with past operations; the general continuance of current or, where applicable, assumed industry conditions; availability of debt and/or equity sources to fund Horizon North's capital and operating requirements as needed; and certain cost assumptions in respect of Horizon North's projects and business.
Horizon North believes the material factors, expectations and assumptions reflected in the forward-looking statements are reasonable at this time but no assurance can be given that these factors, expectations and assumptions will prove to be correct. The forward-looking statements included in this news release are not guarantees of future performance and should not be unduly relied upon. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements including, without limitation: general economic, market and business conditions; the Corporation's future capital requirements; the delivery of and demand for the Corporation's products and services may not have the results currently anticipated by Horizon North; reliance on industry partners; unforeseen legal or regulatory developments; and certain other risks detailed from time to time in Horizon North's public disclosure documents including, without limitation, those risks identified in this news release, and in Horizon North's annual information form, copies of which are available on Horizon North's SEDAR profile at www.sedar.com . Readers are cautioned that the foregoing list of factors is not exhaustive and are cautioned not to place undue reliance on these forward-looking statements.
The forward-looking statements contained in this news release are made as of the date hereof and the Corporation undertakes no obligations to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
This news release contains measures, including "consolidated adjusted EBITDA", that do not have any standardized meaning as prescribed by Canadian generally accepted accounting principles ("GAAP") and therefore are considered non-GAAP measures. These measures may not be comparable to similar measures presented by other issuers. For further information regarding non-GAAP measures used by the Corporation, please refer to the management's discussion and analysis of the Corporation, copies of which are available on Horizon North's SEDAR profile at www.sedar.com .
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SOURCE Horizon North Logistics Inc.