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
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.
Further information regarding CVTech is available in the SEDAR database
(www.sedar.com) and on the Corporation's website at www.cvtech.ca.
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