Changes Provide Financial Flexibility to Support Operations
CALGARY, Dec. 21, 2012 /CNW/ - The Churchill Corporation (TSX: CUQ, CUQ.DB) ("Churchill" or the "Corporation") today announced that it has secured an Amendment (the "Amendment") to its July 2012 Credit Agreement (the "Agreement"). The Amendment modifies financial covenant levels with respect to the Corporation's secured leverage, total leverage and interest coverage hurdles. Specifically, an immediate:
- increase in Senior Debt to EBITDA covenant ratio to 3.0 to 1.0, declining to 2.75 to 1.0 on October 1, 2013 and to 2.5 to 1.0 on January 1, 2014;
- increase in Debt to EBITDA covenant ratio to 3.0 to 1.0;
- a decrease in Interest Coverage ratio to 2.5 to 1.0, increasing to 2.75 to 1.0 on July 1, 2013 and to 3.0 to 1.0 on October 1, 2013.
The Amendment became effective today and was secured with the unanimous consent of the lending syndicate.
About The Churchill Corporation
The Churchill Corporation provides building construction, commercial and industrial electrical contracting, earthmoving and industrial insulation services to an array of public and private sector clients. Churchill operates office locations throughout British Columbia, Alberta, Saskatchewan, Manitoba, and northern Ontario. Churchill common shares and convertible debentures are listed on the Toronto Stock Exchange under the symbols "CUQ" and "CUQ.DB", respectively. www.churchillcorporation.com
SOURCE: The Churchill Corporation
For further information:
Vice President, Investor Relations
The Churchill Corporation