Synergex Corporation

Synergex Corporation

December 17, 2007 16:04 ET

Synergex Announces $17 Million Long Term Senior Secured Loan Proceeds to Finance Growth in Mexico, Latin America and Acquisitions

MISSISSAUGA, ONTARIO--(Marketwire - Dec. 17, 2007) - Synergex Corporation (TSX:SYX) announced today the closing of a $17 million long term fixed rate senior secured loan from Integrated Asset Management Corp. (IAM) and its private corporate debt group, Integrated Private Debt Corp (IDP). The proceeds are intended to fund general corporate needs, future strategic acquisitions, and ongoing growth in Mexico, Central and South American.

Latin America and Mexico present a significant new market for Synergex' Commercial Gateway services, a state-of-the-art supply chain management system developed for the video gaming industry. Fifty-five percent of the region's 108 million consumers fall into the primary target audience for video gaming, and the market is predicted to grow between 20 to 30 percent through 2009.

"With this financing in place, Synergex is in an excellent position to capitalize on our strong presence in Mexico and Latin America," said David Aiello, President and CEO, Synergex Corporation. "Through our offices in Mexico City, Bogota, Sao Paulo and Santiago, we have the expertise and the network to build on our existing business lines and expand into new markets."

Synergex drew $5 million of the long term facility at closing to support peak seasonal sales, replenish working capital used for fixed assets purchases exceeding $3 million which occurred over the prior 12 months, and to provide additional working capital. Synergex has $12 million available for future acquisitions and expansion in addition to unused Bank credit facilities of $5 million.

As at September 30, 2007, the company's working capital ratio was 1.44 to 1 following the completion of major fixed asset purchases to open facilities for Mexican and Latin American expansion. With the new long-term financing from IPD and Synergex' own fourth quarter seasonal profits, the working capital ratio is expected to exceed 1.6 to 1.

IPD provides funding from and manages the $600 million Integrated Private Debt Fund LP on behalf of a number of Canadian pension funds and other institutional investors. IPD offers fixed rate long term loans to mid-market companies for such purposes as business expansion, acquisition financing, and project finance. Loan origination, underwriting, structuring, management and administration are provided by IPD.

About Synergex

A leading provider of business solutions, Synergex Corporation offers a variety of services and support for some of the world's leading organizations. The company's core business is rooted in providing administration and third party logistics services, but it uses innovative technology and processes to provide a wide variety of unique, related services.

Synergex offers product solutions in areas such as distribution, retail, technology and business information. These solutions enable companies to increase efficiency and improve their performance while building a competitive advantage. Synergex' vast diversified commercial services and solutions unlock value in the specific areas of logistics, business strategy, digital media, RFID, and technology.

Headquartered in Mississauga, Ontario, with operations across North, Central and South America, Synergex serves a broad base of customers that includes a number of multinational enterprises. Synergex is listed on the Toronto Stock Exchange and trades under the symbol SYX. For further information, please visit

Some of the statements contained in this news release may be forward-looking statements such as the Company's future plans, objectives and goals. The statements that are not historical facts are forward-looking statements involving known and unknown risks and uncertainties which could cause actual results to vary considerably from these statements.

Contact Information

  • Synergex Corporation
    David Aiello
    President & CEO
    (905) 565-1212
    Synergex Corporation
    John L. Smith
    Senior Vice President, Business Information
    (905) 740-3158