Canyon Services Group Inc. (TSX:FRC) amends its credit facilities

    CALGARY, June 4 /CNW/ - Canyon Services Group Inc. today announced that
it has amended its credit agreement (the "Agreement") with its existing lender
to update and restate the existing Extendible Facility and Operating Facility,
and to add a non-revolving extendible term facility (the "Term Facility") in
the amount of $11.4 million. The proceeds from the Term Facility will be used
to pay off Canyon's capital leases and to pay down its revolving credit
facilities. These amendments result in additional debt capacity and a
reduction in debt service costs of approximately $2.1 million per annum.
    Canyon's credit facilities are now comprised of an $11.4 million Term
Facility, a $20.0 million Extendible Facility, a $5.0 million Operating
Facility and automotive equipment loans. Canyon's total and net debt remain
unchanged with the new Agreement. Proforma the amendment, Canyon has a total
of $10.6 million of capacity available to meet the Company's working capital
and capital expenditure requirements.
    The Company's capital program for 2008, estimated at $4.0 million,
includes transportation and storage equipment associated with increased
activity out of its Grande Prairie operating base. These expenditures are
expected to be incurred in the second half of 2008.
    Under the Agreement, the new Term Facility bears interest at the bank's
prime lending rate plus 0.75 percent and is repayable by way of blended
monthly principal and interest payments based on a 20 year amortization
period. The Term Facility matures on May 30, 2010 and can be extended at the
lender's option for successive two year periods from the then current term
maturity date. Security for the Term Facility is a mortgage over the Company's
land and buildings and a general security agreement over all of the Company's
    The terms of the $20.0 million Extendible Facility ($14.4 million drawn
proforma the amendment) and the $5.0 million Operating Facility ($nil drawn
proforma the amendment) remain unchanged. The Extendible Facility is subject
to renewal on May 29, 2009 at which time it can be extended at the lender's
option for 364 days, while the Operating Facility continues to be a demand
revolving facility.
    We seek safe harbor.

For further information:

For further information: Brad Fedora, President, Canyon Technical
Services Ltd, No.1600, 510-5th St. S.W., Calgary, Alberta, T2P 3S2, Phone
(403) 290-2491, Fax (403) 355-2211; Or Barry O'Brien, Vice President, Finance
and CFO, Canyon Technical Services Ltd, No.1600, 510-5th St. S.W., Calgary,
Alberta, T2P 3S2, Phone (403) 290-2478, Fax (403) 355-2211

Organization Profile

Canyon Services Group Inc.

More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890