Supremex secures new three years $40 million credit facility

MONTREAL, Aug. 18, 2014 /CNW Telbec/ - Supremex Inc., Canada's leading manufacturer and marketer of a broad range of stock and custom-manufactured envelopes and growing provider of packaging and related products (TSX: SXP), today announced a new $40 million credit facility with HSBC Bank Canada. The three-year facility consists of a $15 million operating facility and a $25 million non-revolving term loan.

Stewart Emerson, President and Chief Operating Officer of Supremex, stated: "This credit facility, which replaces the company's previous syndicated facility, provides us with improved covenants, greater flexibility and the opportunity to reduce our borrowing costs. The terms of this credit facility reflect the Company's improved financial performance, positive business outlook and ability to generate significant free cash flow."

Year-to-date, Supremex reduced its net debt by $7.3 million and currently has a net debt to trailing twelve-month EBITDA ratio of 1.2 times, as of June 30, 2014.

Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of applicable Canadian securities laws, including (but not limited to) statements about the EBITDA projection, future performance of Supremex and similar statements concerning anticipated future results, circumstances, performance or expectations. A statement is forward-looking when it uses what Supremex knows and expects today to make a statement about the future. Forward-looking statements may include words such as anticipate, assumption, believe, could, expect, goal, guidance, intend, may, objective, outlook, plan, seek, should, strive, target and will. These statements relate to future events or future performance and reflect current assumptions, expectations and estimates of management regarding growth, results of operations, performance, business prospects and opportunities, Canadian economic environment and liability to attract and retain customers. Such forward-looking statements reflect current assumptions, expectations and estimates of management and are based on information currently available to Supremex as at the date of this press release.

Forward-looking statements are subject to certain risks and uncertainties, and should not be read as guarantees of future performance or results and actual results may differ materially from the conclusion, forecast or projection stated in such forward-looking statements. These risks, uncertainties and other factors include but are not limited to the following: economic cycles, availability of capital, decline in envelope consumption, increase of competition, exchange rate fluctuation, raw material increases, credits risks with respect to trade receivables, increase in funding of pension plans, postal services deficiencies, interest rates fluctuation and potential risk of litigation. Such assumptions, expectations, estimates, risks and uncertainties are discussed throughout our MD&A for fiscal 2013 and, in particular, in "Risk Factors". Consequently, we cannot guarantee that any forward-looking statements will materialize. Readers should not place any undue reliance on such forward-looking statements.

The Management Discussion and Analysis and Financial Statements can be found on and on Supremex's website


SOURCE: Supremex Inc.

For further information: Benoît Crowe, CPA, CA, Vice-President, Finance, (514) 595-0555



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