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.
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
SOURCE Winalta Inc.
For further information:
David Hopley, CFO
Phone: (780) 960-6900
Austin Fraser, SVP
Phone: (780) 960-6900