Macro Enterprises Inc.
TSX VENTURE : MCR

Macro Enterprises Inc.

May 25, 2015 19:35 ET

Macro Enterprises Inc. Announces Commitment for New $115 Million Senior Secured Credit Facilities

FORT ST. JOHN, BRITISH COLUMBIA--(Marketwired - May 25, 2015) -

New Senior Secured Credit Facilities

Macro Enterprises Inc. (TSX VENTURE:MCR) (the "Company" or "Macro") is pleased to announce that it has entered into a commitment letter with The Toronto-Dominion Bank ("TD Bank") for the provision of $115 million in new senior secured credit facilities. TD Bank has committed to structure and arrange the new credit facilities comprising a $65 million three-year revolving credit facility, of which up to $30 million will be provided by TD Bank, and a $50 million letter of credit facility.

TD Bank has committed to use commercially reasonable efforts, but without any obligation, to arrange a syndicate of lenders to provide the balance of the credit facilities. TD Bank will act as lead arranger, bookrunner and administration agent. Its commitment is subject to customary terms and conditions, including the condition that the balance of the facilities are provided by the other participants in the syndicate. Closing is expected to occur by July 15, 2015.

After closing, the Company will have the right, subject to customary conditions, to increase the amount of the revolving facility by up to $20 million, bringing the total credit facilities to a maximum of $135 million, by securing increased commitments from one or more of the initial lenders or by securing one or more new lenders.

Macro is strategically pursuing multiple significant projects in pipeline and facilities construction. The revolving facility will provide enhanced flexibility and essential funding support as the Company works to realize on those large-scale potential growth opportunities. The secured letter of credit facility is intended to facilitate the issuance of letters of credit to support qualifying projects.

The Company's obligations under the credit facilities will be secured by a first priority ranking security interest in all property and assets of the Company and of its material subsidiaries.

The Company

Macro's core business is providing pipeline and facilities construction and maintenance services to major companies in the oil and gas industry in northeastern B.C. and northwestern Alberta. The Company's corporate office is in Fort St. John, British Columbia. Its shares are listed on the TSX Venture Exchange under the symbol MCR. Information on the Company's principal operations can be found at www.macroindustries.ca

Forward-Looking Statements

Certain statements in this news release regarding the expected terms, closing and intended use of the new credit facilities may include forward-looking information that involves various risks and uncertainties. These risks and uncertainties include the risk that by reason of oil prices, global economic conditions, government regulation of energy and resource companies, weather patterns, terrorist activity, the price and availability of alternative fuels, the availability of pipeline capacity, potential instability or armed conflict in oil-producing regions, material changes in the Company's affairs, the results of due diligence investigations or other circumstances leading to a lack of appetite for the provision of the credit facilities on the part of the prospective lenders, the announced credit facilities are reduced in scope or are not advanced. They also include the risk that the Company is not the successful bidder or is otherwise not able to realize on potential growth opportunities identified by it. These risks and uncertainties may cause actual results to differ from information contained herein, and there can be no assurance that such forward-looking statements will prove to be accurate. These statements are based on the commitment letter in place and the expectations of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, the Company assumes no obligation to update forward-looking statements should circumstances or management's expectations change.

Neither 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

  • Macro Enterprises Inc.
    Frank Miles
    President and C.E.O.
    (250) 785-0033

    Macro Enterprises Inc.
    Jeff Redmond, CPA, CA
    C.F.O.
    (250) 785-0033