WINNIPEG, Jan. 29 /CNW/ - Empire Industries Ltd. (TSX-V: EIL) ("Empire" or the "Company"), announced today that it has accepted a $17.5 million Commitment Letter from a Canadian Chartered Bank (the "New Bank") to provide a centralized $10 million revolving operating facility ("New Operating Facility") and a $7.5 million term loan ("New Term Loan") to the Company subject to final legal documentation and completion of due diligence.
The Company's wholly owned subsidiary, Empire Iron Works Ltd. ("Empire Iron"), currently has a senior secured credit agreement (the "RBC Credit Agreement") with the Royal Bank of Canada ("RBC") which includes a revolving operating facility and a $2.4 million term loan. The Company's wholly-owned subsidiaries, George Third & Son Ltd. and Dynamic Structures Ltd. (the "BC Group"), currently have a senior secured credit agreement ("HSBC Credit Agreement") with HSBC Bank of Canada ("HSBC").
The proceeds from the New Operating Facility and New Term Loan will be used initially to repay the amounts owed under the RBC Credit Agreement and the revolving operating facility under the HSBC Credit Agreement. The unused portion of the New Operating Facility will be used for general corporate purposes in the normal course of business including financing future working capital needs.
About Empire Industries Ltd.
Empire Industries Ltd. adds value to steel through its leading, Western Canadian engineered products manufacturing and steel fabrication groups and its Fort McMurray-based strategic partnership in the maintenance services sector. The Company's business operations are focused on the infrastructure, commercial and industrial construction marketplace of Western Canada and select niche markets internationally. Empire's common shares are listed on the TSX Venture Exchange under the symbol EIL.
This press release contains forward-looking statements, within the meaning of applicable securities legislation, concerning Empire's business and affairs. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". These forward looking statements are based on current expectations, and are naturally subject to uncertainty and changes in circumstances that may cause actual results to differ materially. Readers are cautioned not to place undue reliance on such forward-looking statements. Forward-looking information is provided as of the date of this press release, and Empire assumes no obligation to update or revise them to reflect new events or circumstances, except as may be required under applicable securities laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE EMPIRE INDUSTRIES LTD.
For further information: For further information: please visit our web-site at: www.empind.com or contact: Guy Nelson, Chairman & CEO, Empire Industries Ltd., Phone: (416) 366-7977, Email: email@example.com; David Carefoot, CFO, Empire Industries Ltd., Phone: (204) 589-9305, Email: firstname.lastname@example.org; Trevor Heisler, Investor Relations, The Equicom Group Inc., Phone: (416) 815-0700 x 270, Email: email@example.com