CALGARY, June 5, 2013 /CNW/ - Winalta Inc. ("Winalta" or the "Company")
is pleased to announce that, effective June 5, 2013, it has entered
into new credit facilities with a financial institution. The new
facilities replace Winalta's current credit facilities with the same
financial institution and consist of:
$20.0 million revolving term loan facility, interest only payments,
interest rate of prime + 1.50%. Currently the Company has drawn $15.0
million of this facility.
This loan facility replaces the $15.0 million facility with an interest
rate of 1.75%
$5.0 million evergreen line of credit, interest and principal payments,
interest rate of prime + 1.50%. The Company has $5.0 million available
on this facility.
This is a new facility which will be used to finance assets that have
specific contractual arrangements with customers.
$3.0 million operating loan facility (revolving), interest rate of prime
+ 1.00%. The Company has not drawn any of the operating facility.
This loan facility replaces a $3.0 million facility with an interest
rate of 1.25%
The three facilities all have a maturity date of April 30, 2015.
The new evergreen line of credit is an important component of the
Company's plan to continue to pursue its new product line, Intergraded
Wellsite Systems (IWS). The IWS was developed to meet the market's
demand for better working and living quarters for SAGD and multilateral
pad drilling. The IWS enhances the Company's rental fleet with assets
that provide a longer term revenue stream.
Winalta Oilfield Rentals, specializes in innovative and high-quality
modular buildings for the Western Canadian Oil and Gas Industry.
Winalta's rental fleet is comprised of single-unit Wellsites,
Integrated Wellsite Systems (IWS), Dedicated Geo Labs, and Drill Camps.
Neither the 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.
Certain information set forth in this press release, including
management's assessment of the potential for increased cash flows,
continued growth of the Company's rental fleet, demand for the
Company's rental units, the Company's pricing strategy, the impact of
the Company's expansion into IWS and the Company's expectation
regarding the status of the economy and its impact on the Company, may
constitute forward-looking statements. By their nature, forward-looking
statements involve material assumptions and are subject to numerous
risks and uncertainties, including with respect to market and economic
conditions and their impact on the Company's business, some of which,
are beyond the Company's control. Readers are cautioned not to place
undue reliance on the forward-looking statements as the assumptions
used in the preparation of such information, although considered
reasonable at the time of preparation, may prove to be imprecise and
actual results, performance or outcomes could materially differ from
those expressed or implied in such forward-looking statements and
accordingly, no assurance can be given that any of the events
anticipated by forward looking statements will transpire or occur, or
if any of them do so, what benefit Winalta will derive therefrom. The
Company does not assume the obligation to revise or update this
forward-looking information after the date of this release or to revise
such information to reflect the occurrence of future unanticipated
events, except as may be required under applicable securities laws.
SOURCE: Winalta Inc.
For further information:
Austin Fraser, President
Phone: (403) 826-5701
David Hopley, CFO
Phone: (780) 469-0143