Strongco Income Fund

Strongco Income Fund

April 15, 2009 17:30 ET

Strongco Renews Credit Facility and Amends Bank Covenants

MISSISSAUGA, ONTARIO--(Marketwire - April 15, 2009) - Strongco Income Fund (TSX:SQP.UN) announced today the renewal of its bank credit facility and amendment of the financial covenants under the facility.

As previously reported, the Fund had requested certain amendments to the debt to tangible net worth ratio and debt service coverage financial covenants under its credit facility with a Canadian chartered bank. Following its annual review, the bank has renewed Strongco's $20 million line of credit with the requested amendments and also increased the foreign exchange facility from $5 million to $10 million.

"We are pleased to have received the requested amendments to our bank covenants," said Robert Dryburgh, President and Chief Executive Officer. "These amendments will allow Strongco to operate in compliance with its lending covenants going forward. We appreciate the relationship with our bank and its ongoing support."

About Strongco

Strongco Income Fund is a trust established to hold one of the largest multi-line industrial equipment distribution providers in Canada. Over 700 employees provide retail service at 29 branches located from Newfoundland to Alberta. Strongco sells, rents and services mobile industrial equipment to sectors that include construction, road building, mining, forestry, utilities and municipalities. Strongco represents leading equipment manufacturers including Volvo, Case, Manitowoc, Cedarapids, Fassi, Allied, Gomaco and ESCO.

Strongco Income Fund is listed on the Toronto Stock Exchange under the symbol SQP.UN.

Forward-Looking Statements

All statements contained in this news release that do not directly and exclusively relate to historical facts constitute forward-looking statements as of the date of this press release. These statements include the statement concerning our outlook for 2008 and are not guarantees. Although we believe that these forward-looking statements are based on information and assumptions which are current, reasonable and complete, these statements are necessarily subject to a number of factors that could cause actual results to vary significantly from current expectations. Please refer to the "Forward-Looking Statements" section in the accompanying Management's Discussion and Analysis.

Contact Information

  • Information contact
    Strongco Income Fund
    David Wood
    Chief Financial Officer