CVTech Group Inc. announces new bank financing agreement
DRUMMONDVILLE, QC, June 11, 2014 /CNW Telbec/ - CVTech Group Inc. ("CVTech" or "the Corporation") (TSX: CVT) today announced it has closed an agreement with a banking syndicate led by BMO Bank of Montreal for a total of $65 million in bank financing. These financing sources have a three-year term and will replace the existing agreements, while providing the Corporation with greater financial flexibility in the execution of its action plan.
The financing consists of a renewable credit facility of an authorized amount of $40 million in Canadian dollars, on which funds may also be drawn in U.S. dollars, and a long-term loan of an authorized amount of $25 million. Borrowing under the agreement is secured by the assets of the Corporation and its subsidiaries, and is subject to certain restrictive clauses and financial ratios. The Corporation would have been in compliance with these clauses and ratios had they been applied as at March 31, 2014.
OVERVIEW OF THE CORPORATION
CVTech is a company operating in the energy sector. The Corporation is a leading provider of construction and maintenance services to the public utility and heavy industrial markets mainly in Quebec, Ontario and the eastern United States. Through its subsidiaries, the Corporation provides maintenance and construction services for electricity transmission and distribution networks, substations and electrical power houses, as well as the control of vegetation on rights-of-way for electrical lines.
This document may contain forward-looking statements that reflect management's current expectations regarding future events. Forward-looking statements are based on a number of factors and include risks and uncertainties. Actual results may differ from forecast results. Management assumes no obligation beyond what is required under the law to update or revise forward-looking statements pursuant to new information or future events.
SOURCE CVTECH GROUP INC.For further information:
André Laramée, MBA
President and Chief Executive Officer
Mario Trahan, CPA, CMA
Chief Financial Officer
Martin Goulet, CFA