Entrec Transportation Services Ltd.

June 04, 2012 08:00 ET

ENTREC Closes $95 Million Credit Facilities

SPRUCE GROVE, ALBERTA--(Marketwire - June 4, 2012) - ENTREC Corporation ("ENTREC") (TSX VENTURE:ENT) is pleased to announce it has closed credit facilities of $95 million with a syndicate of lenders led by Canadian Western Bank ("CWB") and including Bank of Nova Scotia and the Canadian Imperial Bank of Commerce. The financing replaces ENTREC's existing CWB credit facility.

The credit facilities consist of a $20 million operating facility (via account overdraft) and a $75 million revolving term facility. The operating facility requires payments of interest only, while individual draws under the revolving term facility are repayable over a five year amortization period. The credit facilities mature on June 1, 2015.

Amounts borrowed under the credit facilities bear interest at the bank's prime rate plus a credit spread based on a sliding scale. ENTREC's current rate of interest on the credit facilities is 4.50%. The credit facilities are subject to compliance with financial covenants and are collateralized by substantially all of ENTREC's assets.

ENTREC will use the credit facilities to refinance existing CWB debt, fund its capital expenditure program and for business acquisitions.

"We are pleased to build on our existing strong relationships with each of our banking partners," comments Jason Vandenberg, ENTREC's Chief Financial Officer. "These credit facilities provide us with significant financial flexibility that will help us to execute our growth strategies over the coming year."


ENTREC specializes in the lifting, transportation (over the road and on-site), loading, off-loading and setting of overweight and oversized cargo for the oil and gas, construction, petrochemical, mining and power generation industries. The common shares of ENTREC trade on the TSX Venture Exchange under the trading symbol "ENT".

Forward-looking statements

This press release contains forward-looking statements which reflect ENTREC's current beliefs and are based on information currently available to ENTREC. These statements require ENTREC to make assumptions it believes are reasonable and 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.

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.

Contact Information

  • ENTREC Corporation
    Rod Marlin
    Chairman & CEO
    (780) 960-5647

    ENTREC Corporation
    John M. Stevens
    President & COO
    (780) 960-5625

    ENTREC Corporation
    Jason Vandenberg
    (780) 960-5630