SPRUCE GROVE, ALBERTA--(Marketwired - March 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.
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".
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.