CALGARY, Sept. 4, 2013 /CNW/ - Petrowest Corporation (PRW : TMX) announced
today that it has entered into a new $30 million revolving operating credit
facility with Bank of Montreal (the "New Facility"). The New Facility matures
in 36 months.
The interest rate for the New Facility is, at the election of Petrowest, the
prime rate or the discount rate for bankers acceptances. The New Facility is
secured by a general security agreement providing a first ranking security
interest over all of the working capital/current assets of Petrowest
Corporation and of each subsidiary and limited partnership in the Petrowest
group and a second ranking security interest over all other assets.
The New Facility allows Petrowest to draw up to $30 million, based upon a
borrowing base determined by the value of accounts receivable. A total of
$18.5 million was funded at closing, and $11.5 million remains available to
draw by Petrowest subject to borrowing base availability.
Lloyd Wiggins, Petrowest's Chief Financial Officer, stated, "we are pleased to
have entered into a new credit facility with interest rates significantly
lower than our existing $22.2 million Canadian dollar term loan. The lower
carrying costs will benefit Petrowest from both a cash flow and bottom line
perspective going forward. In addition, the New Facility will provide us with
financing based on our working capital requirements."
The existing $22.2 million Canadian dollar term loan (which had a maturity
date of June 13, 2015) is being paid out with the proceeds from the New
Facility and cash on hand.
Petrowest is an Alberta corporation involved in pre-drilling and
post-completion energy services as well as industrial and civil infrastructure
projects, gravel crushing and hauling for non-energy sector customers.
Petrowest's primary operations are based in the Grande Prairie area of
northern Alberta and in northeastern British Columbia.
Richard Quigley, President and Chief Executive Officer, at (780) 830-0881, or
Ian Hogg, Vice President, Corporate Affairs, at (403) 384-0407, or Lloyd
Wiggins, Chief Financial Officer, at (416) 572-2160, email@example.com
SOURCE: Petrowest Corporation
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-0- Sep/04/2013 20:16 GMT
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