Bri-Chem Corp. announces that HSBC Bank Canada approves $40 million credit facility



    
    TSX Venture Exchange
    Symbol "BRY"
    

    EDMONTON, Oct. 9 /CNW/ - Bri-Chem Corp. ("Bri-Chem") (TSX Venture
Exchange: BRY), a leading Canadian wholesale distributor of industrial
drilling fluids, steel products and services, today announced the approval of
a $40 million credit facility ("Facility") with HSBC Bank Canada.
    The renewed and amended Facility consists of a $35 million operating
loan, increased from $25 million, and a new $5 million acquisition loan which
will be utilized to repay the current higher interest bearing $3 million
subordinate loan with HSBC Capital. Pricing for the Facility is at prime, with
a sliding scale increase based on debt to equity covenant ratios. The Facility
contains the usual positive and negative covenants and certain financial ratio
requirements.
    "We are delighted to continue our relationship with HSBC Bank Canada and
the fact that we were able to increase our credit facilities and the
flexibility of their conditions is a testament to our sound balance sheet,"
said Bri-Chem's Chairman Don Caron. "With this Facility, and our strong
operating cash flow, we can continue to fully support our current and future
growth initiatives."

    About Bri-Chem

    Bri-Chem is a wholesale distributor of industrial drilling fluid supplies
and steel products and services to the oil and gas and construction
industries. Bri-Chem provides over 100 domestic and foreign drilling fluid
products to customers throughout Alberta, British Columbia and Saskatchewan
and distributes drill pipe, carbon steel welded pipe, carbon steel seamless
pipe, stainless steel welded pipe, stainless steel seamless pipe, tubing &
casing, sucker rods, galvanized steel products as well as fittings and
flanges. Bri-Chem's customers operate in a wide range of industries, including
oil & gas, manufacturing, forestry, agriculture, construction, and mining.

    Forward-Looking Statements

    Certain statements contained in this press release, including statements
which may contain words such as "could", "should", "expect", "anticipate",
"believe", "will", and similar expressions and statements relating to matters
that are not historical facts are forward-looking statements. Such
forward-looking statements involve known and unknown risks and uncertainties
which may cause the actual results, performances or achievements of Bri-Chem
to be materially different from any future results, performances or
achievements expressed or implied by such forward-looking statements. Such
factors include, but are not limited to, fluctuations in oil and gas activity
levels, political and economic conditions, and the demand for products
provided by Bri-Chem.

    
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.
    





For further information:

For further information: Don Caron, T: (780) 420-6885, F: (780)
496-9172, dcaron@wacapital.com

Organization Profile

BRI-CHEM CORP.

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