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
"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.
SOURCE: Vicwest Inc.
For further information:
President & Chief Executive Officer
Tel: (905) 469-5700
Chief Financial Officer
Tel: (905) 469-5706