Aveda Transportation and Energy Services Inc. Announces Increase to Senior Lending Facility
June 12 2014 - 8:30AM
Marketwired
Aveda Transportation and Energy Services Inc. Announces Increase to
Senior Lending Facility
CALGARY, ALBERTA--(Marketwired - Jun 12, 2014) - Aveda
Transportation and Energy Services Inc. ("Aveda" or the "Company")
(TSX-VENTURE:AVE), a leading provider of oilfield hauling services
and equipment rentals to the energy industry, today announced that
it has received commitment letters (the "Commitments") from a
syndicate of lenders led by PNC Bank Canada Branch, and including
Royal Bank of Canada, and another large institutional lender,
pursuant to which the availability under its current asset based
lending facility (the "Facility") will be increased from $75.0
million to between $115.0 to $125.0 million effective June 30,
2014. The Commitments are subject to customary conditions related
to completion of appropriate legal documentation and due diligence.
The Company will pay customary fees on closing.
"We have secured a series of increases to our senior credit
facility as we have identified and acted on opportunities to grow
our company, particularly in the United States," said Bharat
Mahajan, Vice President, Finance and CFO of Aveda. "This latest
increase provides us with access to capital that will allow us to
act on an array of strategic growth initiatives both organic and
acquisitive."
The Company is actively pursuing a number of acquisition
opportunities along with several organic growth initiatives.
Investors are cautioned that the ability of the Company to execute
on any of these growth initiatives are subject to the risk factors
outlined below.
About Aveda Transportation and Energy Services
Aveda provides specialized transportation services and equipment
required for the exploration, development and production of
petroleum resources in the Western Canadian Sedimentary Basin and
in the United States of America principally in and around the
states of Texas, Pennsylvania and North Dakota. Transportation
services include both the equipment necessary to move the load as
well as a trained, professional driver capable of securing, moving
and manipulating the load at its origin and destination. Aveda's
rental operations include the rental of tanks, mats, pickers, light
towers and other equipment necessary for oilfield operations.
Aveda was incorporated in 1994 as a private company to serve the
oil and gas industry. In the spring of 2006 the Company went public
on the TSX Venture Exchange. Aveda has major operations in Calgary,
AB, Slave Lake, AB, Leduc, AB, Sylvan Lake, AB, Edson, AB, Mineral
Wells, TX, Pleasanton, TX, Midland, TX, Williamsport, PA,
Williston, ND, and Buckhannon, WV. Aveda is publicly traded on the
TSX Venture Exchange under the symbol AVE. For more information on
Aveda please visit www.avedaenergy.com.
This News Release contains certain forward-looking statements
and forward-looking information (collectively referred to herein as
"forward-looking statements") within the meaning of applicable
Canadian securities laws. All statements other than statements of
present or historical fact are forward-looking statements.
Forward-looking statements are often, but not always, identified by
the use of words such as "anticipate", "achieve", "could",
"believe", "plan", "intend", "objective", "continuous", "ongoing",
"estimate", "outlook", "expect", "may", "will", "project", "should"
or similar words, including negatives thereof, suggesting future
outcomes. In particular, this News Release contains forward-looking
statements relating to: the Company's growth opportunities. Aveda
believes the expectations reflected in such forward-looking
statements are reasonable as of the date hereof but no assurance
can be given that these expectations will prove to be correct and
such forward-looking statements should not be unduly relied
upon.
Various material factors and assumptions are typically applied
in drawing conclusions or making the forecasts or projections set
out in forward-looking statements. Those material factors and
assumptions are based on information currently available to Aveda,
including information obtained from third party industry analysts
and other third party sources. In some instances, material
assumptions and material factors are presented elsewhere in this
News Release in connection with the forward-looking statements.
Readers are cautioned that the following list of material factors
and assumptions is not exhaustive. Specific material factors and
assumptions include, but are not limited to:
- the performance of Aveda's businesses, including current
business and economic trends;
- oil and natural gas commodity prices and production
levels;
- capital expenditure programs and other expenditures by Aveda
and its customers;
- the ability of Aveda to retain and hire qualified
personnel;
- the ability of Aveda to obtain parts, consumables, equipment,
technology, and supplies in a timely manner to carry out its
activities;
- the ability of Aveda to maintain good working relationships
with key suppliers;
- the ability of Aveda to market its services successfully to
existing and new customers;
- the ability of Aveda to obtain timely financing on acceptable
terms;
- currency exchange and interest rates;
- risks associated with foreign operations;
- changes under governmental regulatory regimes and tax,
environmental and other laws in Canada and the United States;
and
- a stable competitive environment.
Forward-looking statements are not a guarantee of future
performance and involve a number of risks and uncertainties, some
of which are described herein. Such forward-looking statements
necessarily involve known and unknown risks and uncertainties,
which may cause Aveda's actual performance and financial results in
future periods to differ materially from any projections of future
performance or results expressed or implied by such forward-looking
statements. These risks and uncertainties include, but are not
limited to, the risks identified in Aveda's annual information form
and management discussion and analysis for the year ended December
31, 2013 (the "MD&A"). Any forward-looking statements are made
as of the date hereof and, except as required by law, Aveda assumes
no obligation to publicly update or revise such statements to
reflect new information, subsequent or otherwise.
Neither 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.
Aveda Transportation and Energy Services Inc.Bharat Mahajan,
CAVice President, Finance and Chief Financial Officer(403)
264-5769bharat.mahajan@avedaenergy.comwww.avedaenergy.com
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