Hartco Inc.
TSX : HCI

Hartco Inc.

August 04, 2009 16:36 ET

Hartco Establishes New Long-Term Financing Agreement

MONTREAL, QUEBEC--(Marketwire - Aug. 4, 2009) - Hartco Inc. (TSX:HCI) today announced that it has concluded new financing agreement with Bank of Montreal to replace its existing asset based lending facility which was scheduled to expire at the end of the year.

The $45 million credit facility is comprised of a three-year committed evergreen revolving credit facility in the principal amount of $25 million which can be extended for an additional year prior to each anniversary and two demand revolving credit facilities in the principal amount of $10 million each (the "Credit Facility"). The credit facility is subject to maintaining usual debt to tangible net worth and fixed charge ratios.

"We are very pleased to have established the new credit facility through a relationship with Bank of Montreal" said Hartco Vice-President and Chief Financial Officer, Carl Gauvreau. "This facility will provide Hartco with greater financial flexibility and will be more adapted to Hartco's business model. The previous asset based facility was originally negotiated in 2004 when Hartco had significant activities in the retail sector from which it has since divested itself. We wish to take this opportunity to thank Wachovia Capital Finance of Canada (recently acquired by Wells Fargo) for their support over the last several years."

The new facility will be used to finance ongoing operating and working capital requirements of the Company and will provide liquidity to support ongoing business development opportunities. The new agreement can be accessed at www.sedar.com.

Hartco's Profile

Hartco Inc. (TSX:HCI) has been a leader in the Canadian information technology business for more than thirty years. Through its operating divisions, which together include more than 60 locations operating across Canada under the banners of Metafore™, MicroAge®, Microserv® and Northwest Digital®, Hartco Inc. delivers IT infrastructure solutions to private and public sector organizations of every size.

Forward-Looking Statements

This news release contains forward-looking information. Except for historical information contained herein, the statements in this document are forward-looking. Forward-looking statements involve known and unknown risks and uncertainties, which may cause actual results in future periods to differ materially from forecasted results. Those risks include, among others, changes in customer demand for information technology products or services, changes in supplier pricing actions or terms, customer orders, pricing actions by competitors, changes in laws and regulations and general changes in economic conditions. Risks that could cause our results to differ materially from our expectations are discussed in our annual Management's Discussion & Analysis.

Contact Information

  • For Investor Relations or for more information:
    Hartco Inc: Carl Gauvreau, CA
    Vice-President Finance and Chief Financial Officer
    514-354-3810
    514-354-8989 (FAX)
    cgauvreau@hartco.com
    www.hartco.com