LONGUEUIL, QC, Jan. 26 /CNW Telbec/ - Héroux-Devtek Inc. (TSX: HRX), a
leading Canadian manufacturer of aerospace and industrial products,
today announced that, subsequent to its third fiscal quarter ended
December 31, 2010, it has reached an agreement in principle with a
syndicate of banks to renew and increase its Credit Facilities (the
"Facilities"). Under the terms of the agreement in principle, the
Facilities will be increased from $125 million to $150 million, for a
period of five years. In addition, subject to lenders' consent, the
Facilities could be increased by an additional amount of $75 million.
These Facilities will be used for working capital, capital expenditures
and other general corporate purposes of Héroux-Devtek Inc. and its
subsidiaries, including acquisitions. These Facilities will be secured
by all assets of the Company and its subsidiaries, and will be subject
to certain restrictive covenants and corporate guarantees granted by
the Company and its subsidiaries.
Management anticipates closing the agreement successfully before the end
of the current fiscal year, on or before March 31, 2011. Existing
facilities mature on October 4, 2011.
Héroux-Devtek Inc. (TSX: HRX), a Canadian company, serves two main
market segments: Aerospace and Industrial Products, specializing in the
design, development, manufacture and repair and overhaul of related
systems and components. Héroux-Devtek Inc. supplies both the commercial
and military sectors of the Aerospace segment with landing gear systems
(including spare parts, repair and overhaul services) and airframe
structural components. The Company also supplies the industrial segment
with large components for power generation equipment and precision
components for other industrial applications. Approximately 70% of the
Company's sales are outside Canada, mainly in the United States. The
Company's head office is located in Longueuil, Québec with facilities
in the Greater Montreal area (Longueuil, Dorval, Laval and St-Hubert);
Kitchener and Toronto, Ontario; Arlington, Texas; as well as
Springfield, Cleveland and Cincinnati, Ohio.
Except for historical information provided herein, this press release
may contain information and statements of a forward-looking nature
concerning the future performance of the Company. These statements are
based on suppositions and uncertainties as well as on management's best
possible evaluation of future events. Such factors may include, without
excluding other considerations, fluctuations in quarterly results,
evolution in customer demand for the Company's products and services,
the impact of price pressures exerted by competitors, and general
market trends or economic changes. As a result, readers are advised
that actual results may differ from expected results.
SOURCE HEROUX-DEVTEK INC.
For further information:
President and Chief Executive Officer
Tel.: (450) 679-3330
Martin Goulet, CFA
Tel.: (514) 731-0000