Allen-Vanguard announces commitment letter from RBC Capital Markets for new credit facilities

    - Three year $200 million term loan and $50 million revolver to replace
      existing senior debt
    - Substantially reduced debt service requirements

    OTTAWA, March 27 /CNW Telbec/ - Allen-Vanguard Corporation (the "Company"
or "Allen-Vanguard") (TSX: VRS) of Ottawa, Canada today announced that it has
executed a commitment letter for secured credit facilities underwritten by RBC
Capital Markets, consisting of a three-year $200 million term loan facility
("Term Loan") and a $50 million revolving credit line ("Revolver"). The
interest rates on the Term Loan and Revolver will be finalized at closing and
are expected to be substantially lower than the interest rates on the
Company's existing senior debt. The Term Loan will be repayable in quarterly
principal payments of $10 million, plus additional quarterly payments ranging
from 50% to 75% of excess cash flow, with any remaining principal repayable
upon the maturity date of the Term Loan. Formal documentation of the credit
facility is expected to be completed on or before April 25, 2008 ("Closing
    The Company will utilize the Term Loan to repay the outstanding balance
on its existing senior debt facilities, expected to be approximately
$180 million on the Closing Date, plus a prepayment penalty equal to 5% of the
outstanding balance.
    The Company notes that these new credit facilities replace the
higher-cost debt the Company took on in conjunction with the acquisition of
Med-Eng in September 2007. "We are very pleased to obtain this committed
financing from RBC Capital Markets, particularly at this time of adverse
credit market conditions," said David E. Luxton, President & CEO. "Our lenders
at the time were instrumental in enabling us to execute a transformational
acquisition of Med-Eng in difficult credit market conditions. The substantial
cash flow from Med-Eng has enabled us to rapidly reduce debt by applying all
available cash to debt payment. The new credit facilities substantially lower
debt service requirements, strengthen our cash position, and give us more
flexibility to pursue growth opportunities.

    Forward looking statements

    This press release may contain forward-looking statements, which reflect
Allen-Vanguard's current expectations regarding future events, its strategy,
expected performance and condition. Forward-looking statements include
statements that are predictive in nature, that depend upon or refer to future
events or conditions, or that include words such as "expects," "anticipates,"
"plans," "believes," "estimates" or negative versions thereof and similar
expressions. In addition, any statement that may be made concerning future
performance, strategies or prospects, and possible future acquisitions or
dispositions, is also a forward-looking statement. Forward-looking statements
are based on current expectations and projections about future events and are
inherently subject to, among other things, risks, uncertainties and
assumptions about the Company and economic factors. Forward-looking statements
are not promises or guarantees of future performance, and actual events and
results could differ materially from those expressed or implied in any
forward-looking statements made about the Company. Any number of important
factors could contribute to these digressions, including, but not limited to,
general economic, political and market factors in North America and
internationally, interest and foreign exchange rates, global equity and
capital markets, business competition, technological change, changes in
government regulations, unexpected judicial or regulatory proceedings, and
catastrophic events. We stress that the above-mentioned list of important
factors is not exhaustive. We encourage you to consider these and other
factors carefully before making any investment decision and we urge you to
avoid placing undue reliance on forward-looking statements. Further, you
should be aware that the Company disclaims any obligation to publicly update
or revise any such forward-looking statements whether as a result of new
information, future events or otherwise, prior to the release of the next
Management Discussion and Analysis to be released by the Company or except as
required by law.

    About Allen-Vanguard

    Allen-Vanguard Corporation supports the mission of military and homeland
security forces around the world with leading proprietary solutions for
protection and counter-measures against hazardous devices of all kinds,
whether chemical, biological, radiological or explosive (CBRNE), including
improvised explosive devices (IEDs) and remotely controlled IEDs (RCIEDs).
Allen-Vanguard equipment is in service in more than 120 countries. Products
include Electronic Counter-Measures ("ECM") equipment for jamming remote
detonation of terrorist devices, specialty security equipment for Explosive
Ordnance Disposal ("EOD"), remote intervention robots for hazardous
applications, and personal protective wear for use in dealing with explosive
and bio-chemical agents. Allen-Vanguard is the developer and/or sole,
worldwide licensee of proprietary technologies such as the Med-Eng bomb suit,
the Defender(TM) and Vanguard(TM) Mk2 bomb disposal robots, and the Universal
Containment System and CASCAD Foam system for blast mitigation and
decontamination of bio-chemical warfare agents. Professional services
encompass counter-IED intelligence, training and advisory services, including
the Triton(TM) Report on terrorist incidents around the world. The Company
operates globally through its wholly-owned subsidiaries under the names
"Allen-Vanguard", "Med-Eng" and "Hazard Management Solutions". Head office
operations are located in Ottawa, Ontario, Canada, with manufacturing
operations in Stoney Creek and Pembroke, Ontario; Ogdensburg, New York;
Tewkesbury, U.K.; and Cork, Ireland; The Company has professional services
operations in Shrivenham, UK, Canada and in the U.S. in Arlington, Virginia,
plus sales offices in Canada, the U.S., the U.K. and Asia. Allen-Vanguard's
shares are listed on The Toronto Stock Exchange (TSX) under the symbol "VRS".

    To find out more about Allen-Vanguard Corporation (TSX: VRS), visit our
website at
    %SEDAR: 00018026E

For further information:

For further information: Rob Ryan, CFO, (416) 277-0288

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