Vicwest Inc. Enhances Flexibility With $120M Revolving Asset Based Lending Facility
OAKVILLE, ON, March 12, 2014 /CNW/ - Vicwest Inc. (the "Company") (TSX: VIC, VIC.DB, VIC.DB.A) today announced that it has negotiated a five year, $120 million revolving senior secured Asset Based Lending ("ABL") facility including a $25 million accordion feature, with a syndicate of lenders, co-led by Canadian Imperial Bank of Commerce ("CIBC") and National Bank of Canada, that includes Royal Bank of Canada and the Bank of Nova Scotia. CIBC will serve as the administrative agent.
The new facility is available to finance working capital, capital expenditures and future acquisitions and replaces the Company's existing $100 million revolving senior credit facility which was subsequently terminated.
"The ABL structure is much better aligned with our business due to both the seasonal nature of our agriculture and building products markets and our working capital requirements. One of the immediate advantages of the ABL is it gives us greater flexibility to purchase raw materials to manage commodity risk in our business, something that was much more restrictive under our prior facility," said Colin Osborne, President and Chief Executive Officer.
The proceeds from the ABL were used to fully repay all outstanding loan balances on the Company's senior revolving credit facility. The senior revolving credit facility was subsequently terminated.
"We are very pleased with the support received from the banking community and the confidence our lending partners have expressed in our business," said Rod Crawford, Chief Financial Officer. "We look forward to the liquidity and flexibility available to us through the ABL as we drive growth and operating performance in the business."
ABOUT VICWEST INC.
Vicwest Inc. is a leading manufacturer and distributor of engineered storage and handling systems for grain, fertilizer and liquid storage as well as building construction products for agriculture, commercial, industrial and residential markets. We operate through two strategically aligned divisions: Vicwest Building Products and Westeel. With approximately 7,000 customers, 1,200 dedicated employees and 34 business partners, we are positioned for growth in domestic and international markets. Vicwest Inc. is a member of the S&P/TSX SmallCap Index. For more information, visit www.vicwestinc.com.
Certain statements in this press release constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements include, but are not limited to, management's beliefs, plans, estimates, and intentions, and similar statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "outlook", "objective", "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "should", "plans" or "continue", or similar expressions suggesting future outcomes or events. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those contemplated by such statements. Readers are encouraged to review the most recently filed Management's Discussion and Analysis and other disclosure documents filed by the Company with Canadian securities regulatory agencies and commissions. Readers are cautioned not to place undue reliance on the Company's forward-looking statements. The forward-looking statements contained herein are made as of the date of this press release and except as required by applicable law, the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
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