Empire Industries Ltd.

Empire Industries Ltd.

March 08, 2010 07:00 ET

Empire Industries Ltd. Successfully Closes $17.5 Million Refinancing

WINNIPEG, MANITOBA--(Marketwire - March 8, 2010) - Empire Industries Ltd. (TSX VENTURE:EIL) ("Empire" or the "Company"), announced today that it successfully completed a $17.5 million re-financing with Canadian Western Bank, to provide a centralized $10 million revolving operating facility ("New Operating Facility") and $7.5 million in term debt ("New Term Loans").

The proceeds from the New Operating Facility and New Term Loans were used to fully repay the amounts owed under a revolving operating facility and term loan with the Royal Bank of Canada and a revolving operating facility with the HSBC Bank of Canada. The unused portion of the New Operating Facility will be used for general corporate purposes in the normal course of business including financing future working capital needs.

The New Term Loans include a $3 million tranche, amortized over 15 years on a straight line basis, with a fixed interest rate of 6.5% over the initial five year term. The second tranche of $4.5 million, amortized over five years on a straight line basis, also carries a fixed interest rate of 6.5% over the five year term. The New Operating Facility carries an interest rate of prime plus 2.25%.

"This re-financing is a major positive step forward for the Company. It restores liquidity to the balance sheet just as the economy is emerging from the recession", said Guy Nelson, Chief Executive Officer of Empire. "The Company has now re-established normal day-to-day financing arrangements and is better able to take advantage of increased activity in industrial, commercial and infrastructure construction in western Canada. We look forward to further developing the business relationship with our new financing partner, Canadian Western Bank."

About Empire Industries Ltd.

Empire Industries Ltd. adds value to steel through its leading, western Canadian engineered products manufacturing and steel fabrication groups and its Fort McMurray-based strategic partnership in the maintenance services sector. The Company's business operations are focused on the infrastructure, commercial and industrial construction marketplace of western Canada and select niche markets internationally. Empire's common shares are listed on the TSX Venture Exchange under the symbol EIL.

Forward-looking statements

This press release contains forward-looking statements, within the meaning of applicable securities legislation, concerning Empire's business and affairs. In certain cases, forward-looking statements can be identified by the use of words such as ''plans'', ''expects'' or ''does not expect'', ''budget'', ''scheduled'', ''estimates'', "forecasts'', ''intends'', ''anticipates'' or variations of such words and phrases or state that certain actions, events or results ''may'', ''could'', ''would'', ''might'' or ''will be taken'', ''occur'' or ''be achieved''. These forward looking statements are based on current expectations, and are naturally subject to uncertainty and changes in circumstances that may cause actual results to differ materially. Readers are cautioned not to place undue reliance on such forward-looking statements. Forward-looking information is provided as of the date of this press release, and Empire assumes no obligation to update or revise them to reflect new events or circumstances, except as may be required under applicable securities laws.

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.

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