ENTREC Closes $240 Million Asset-Based Senior Credit Facility
March 07 2014 - 7:00AM
Marketwired
ENTREC Closes $240 Million Asset-Based Senior Credit Facility
SPRUCE GROVE, ALBERTA--(Marketwired - Mar 7, 2014) - ENTREC
Corporation (TSX-VENTURE:ENT) ("ENTREC") announced today that it
has closed a new $240 million senior secured asset-based credit
facility (the "ABL Facility") with a syndicate of lenders led by
Wells Fargo Capital Finance Corporation Canada. The syndicate of
lenders also includes The Bank of Nova Scotia, Canadian Western
Bank, The Toronto-Dominion Bank, and National Bank of Canada. The
ABL Facility replaces ENTREC's previous senior debt facilities and
will be used to fund future capital expenditures and business
acquisitions and for general corporate purposes.
"We are very pleased to enter into this strategic relationship
with Wells Fargo, one of the world's leading asset-based lenders,
and build on our existing strong relationships with our other
banking partners to put this ABL Facility in place," said Jason
Vandenberg, ENTREC's Chief Financial Officer. "This facility is
covenant light with a borrowing base that increases as our business
grows making the ABL Facility a perfect fit with our business. The
customized financing provided by Wells Fargo demonstrates the
strong value in our equipment fleet and will provide us with
significant financial flexibility to continue to execute our growth
strategies."
The ABL Facility has a five year term and requires payments of
interest only. Amounts borrowed bear interest, at ENTREC's option,
at bank prime or bankers' acceptance rates, plus a credit spread
based on a sliding scale.
The amount available under the ABL Facility is calculated
monthly based upon a specified percentage of eligible equipment and
trade accounts receivable, less applicable reserves. ENTREC
currently has excess borrowing capacity of approximately $69
million available for use. Total borrowing capacity will increase
further as ENTREC acquires additional property, plant and equipment
secured under the ABL Facility.
The ABL Facility is subject to compliance with springing
financial covenants.
About ENTREC
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".
Forward-looking statements
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.
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.
ENTREC CorporationJohn M. StevensPresident & CEO(780)
960-5625ENTREC CorporationJason VandenbergCFO(780) 960-5630
Entrec Corporation (TSXV:ENT)
Historical Stock Chart
From May 2024 to Jun 2024
Entrec Corporation (TSXV:ENT)
Historical Stock Chart
From Jun 2023 to Jun 2024