Winalta Inc. Secures Bank Financing

CALGARY, Feb. 22 /CNW/ - Winalta Inc. ("Winalta" or the "Company") is pleased to announce that it has entered into a commitment letter in respect of new credit facilities in the aggregate amount of $20 million with the Alberta Treasury Branch ("ATB"). The credit facility consists of a $3 million operating loan facility (revolving) and a $17 million non-revolving term facility.

The $20 million total facility will be advanced following confirmation that the Company's audited October 31, 2010 year end financial statements contain no material changes from information previously provided.  Additionally, the bank will review the Company's December 31, 2010 un-audited financial statements to ensure compliance with the facility's financial covenants. The Company intends to use the $17 million term facility to replace its existing $15 million bridge loan, utilizing the additional $2 million for expansion capital.  The $3 million facility will be used as a revolving operating loan to be used for day to day operations.

Both facilities are demand loans and contain both financial and non-financial covenants relating to the Company's operations.  The financial covenants consist of a Current Ratio, a Debt to Tangible Net Worth and a Fixed Charge Coverage Ratio.  The interest rate for the first facility is prime + 2% and prime + 3% for the second facility.  The second facility has a four year term.

Winalta Inc., operating under the trade name, Winalta Oilfield Rentals, is an oilfield service provider that specializes in portable industrial rental accommodations, remote offices and Dedicated Geo Labs; servicing the Western Canadian Oil and Gas Industry.  

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. 

Forward-looking information

Certain information set forth in this press release, including management's assessment of future plans and new financing arrangements, contains forward-looking statements.  By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which, including market conditions, are beyond our 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 there from.  The Corporation 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:

David Hopley, CFO
Phone: (780) 960-6900

Austin Fraser, SVP
Phone: (780) 960-6900  

Profil de l'entreprise

Winalta Inc.

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