IPL Inc.
TSX : IPI.A

IPL Inc.

September 28, 2009 08:30 ET

IPL Inc. Announces Extension and Expansion of Its Credit Facilities

SAINT-DAMIEN, QUEBEC--(Marketwire - Sept. 28, 2009) - IPL Inc. (TSX:IPI.A), one of North America's leading manufacturers of plastic products, this morning announced it has extended its existing credit facilities and secured an additional loan to fund its capital investment program.

First, IPL has renewed loans totalling $18.2 million. The maturity date, initially scheduled for February 28 and March 1, 2010, is now set for July 31, 2013. Given these new terms, this proactive measure will reduce the Company's principal repayments by $2.0 million for fiscal 2010 and by $2.7 million for subsequent years.

Second, IPL's lenders have approved new credit facilities of $16.0 million. This financing, available to IPL through September 30, 2010, will facilitate funding of the Company's capital investment program for fiscal 2009 and 2010. The facility has a maximum term of five years and a total amortization period of eight years.

In general, the interest rate on these loans will be based on the bank's prime rate, plus a mark-up calculated according to the Company's financial ratios.

About IPL

IPL Inc. is one of the leading North American producers of moulded plastic products through injection and extrusion for various industrial manufacturing sectors. IPL employs close to 900 people in its four plants located in Saint-Damien, Saint-Lazare and Lawrenceville (Quebec), and Edmundston (New Brunswick). The Company manufactures and markets over 400 products for the packaging, materials handling and environment sectors. IPL also provides highly technical value-added custom moulding services for the transport industry, as well as for various industrial uses. Further information about IPL is available at www.ipl-plastics.com.

Forward Looking Statements

With the exception of historical information, this press release may contain declarations of a speculative nature with regard to the Company's future performance. These are made based on assumptions, uncertainties and management's best estimates with regard to future events, and are subject to certain risks factors. Such factors might include, but are not limited to, fluctuations in quarterly results, changes in customer demand for the Company's services and the impact of competitive price pressures, as well as general market trends and changing economics. Consequently, readers are advised that actual results may be different than expected results.

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