ENTREC Corporation
TSX : ENT

ENTREC Corporation

June 17, 2016 07:00 ET

ENTREC Convertible Debenture Amendments Take Effect

ACHESON, ALBERTA--(Marketwired - June 17, 2016) - ENTREC Corporation (TSX:ENT) ("ENTREC" or the "Corporation"), an employee-owned heavy haul transportation and crane solutions provider, is pleased to announce that it has entered into a second supplemental indenture with the trustee for its 7.00% convertible unsecured subordinated debentures originally due October 31, 2017 (ENT.DB) (the "Debentures") to give effect to amendments to the Debentures that were approved at a special meeting of Debenture holders held on June 10, 2016. The amendments result in the following changes to the Debentures:

  1. INCREASING the underlying interest rate from 7.00% to 8.50% effective October 31, 2016 (being the commencement of the next interest rate accrual period);
  2. DECREASING the conversion price from $2.60 to $1.00 per share of the Corporation;
  3. EXTENDING the maturity date from October 31, 2017 to June 30, 2021;
  4. PERMITTING the Corporation to redeem the Amended Debentures, in whole or in part, at any time up to June 30, 2021, at a price equal to the principal amount thereof plus accrued and unpaid interest to, but excluding the date of the redemption;
  5. REMOVING the Corporation's ability to, upon the conversion of the Amended Debentures by a holder thereof, elect to pay the holder cash in an amount and at such time as determined in accordance with the Indenture; and
  6. REMOVING the Corporation's ability to undertake any rights offering, issuance of securities, subdivision of the common shares of the Corporation, dividend or other distribution on the common shares of the Corporation or any other securities, capital reorganization, reclassification or any similar type of transaction in which (i) the number of securities to be issued, (ii) the price at which securities are to be issued, converted or exchanged, or (iii) any property or cash that is to be distributed or allocated, is in whole or in part based upon, determined in reference to, related to or a function of, directly or indirectly, (x) the exercise or potential exercise of the Common Share Redemption Right (as defined in the trust indenture governing the Debentures) or the Common Share Repayment Right (as defined in the trust indenture governing the Debentures), or (y) the Current Market Price (as defined in the trust indenture governing the Debentures) determined in connection with the exercise or potential exercise of the Common Share Redemption Right or the Common Share Repayment Right.

About ENTREC

ENTREC is an employee-owned heavy haul transportation and crane solutions provider to the oil and natural gas, construction, petrochemical, mining and power generation industries. ENTREC is listed on the Toronto Stock Exchange under the symbol ENT.

Contact Information

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

    ENTREC Corporation
    Jason Vandenberg
    CFO
    (780) 960-5630
    www.entrec.com