Divestco Inc.

Divestco Inc.

April 20, 2007 21:12 ET

Divestco Announces New $60 Million Bank Facility

CALGARY, ALBERTA--(CCNMatthews - April 20, 2007) - DIVESTCO INC. (TSX:DVT) ("Divestco" or the "Corporation") is pleased to announce that it has closed a new CAD $60 million bank facility with Wells Fargo Financial Corporation Canada ("WFFCC") a part of US based Wells Fargo & Company ("Wells Fargo"). Divestco intends to use the proceeds to fund future growth initiatives and to replace the Corporation's existing senior and term debt providers. Divestco had a total of $14.4 million drawn with its senior and term debt providers as at December 31, 2006.

The new WFFCC financing provides Divestco with a more balanced capital structure that will allow increased flexibility for the Corporation to execute its business plan and continue to achieve positive results for its shareholders. The interest rate options are appropriate for this type of financing and are consistent with what the Corporation previously had in place. Divestco retained Durham Capital Corporation ("Durham") out of New York to provide introductions and assist with the arrangement.

Roderick Chisholm, Chief Financial Officer of Divestco commented: "This financing marks a major milestone at Divestco and is appropriate for the growth and results achieved to date. We are pleased to partner with an institution that clearly understands the Canadian market place, the oil and gas seismic, software and services industry and our unique business model. From the outset, we have been impressed with Wells Fargo and we are extremely pleased that they have made a significant lending commitment to Divestco, and in turn the Western Canadian banking landscape. We look forward to a long and mutually beneficial relationship. Furthermore, Divestco was very pleased with Durham's assistance throughout the entire process."

Divestco is an innovative software, data, services, and consulting company providing integrated solutions for the oil and gas industry. By implementing a strategy of integration between our software, services, and datasets, and potentially all three together, we are creating a unique set of offerings. Divestco is headquartered in Calgary, Alberta, Canada and trades on the Toronto Stock Exchange under the symbol "DVT".

Statements in this document that may be considered forward-looking are based on management's current expectations that involve a number of risks and uncertainties, which could cause actual results to differ from those anticipated.

The TSX has not reviewed nor accepts responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Divestco Inc.
    Mr. Stephen Popadynetz
    Chief Executive Officer
    (403) 218-6466
    Divestco Inc.
    Mr. Roderick Chisholm
    Chief Financial Officer
    (403) 218-6450
    Website: www.divestco.com