VANCOUVER, March 16 /CNW/ - CY Oriental Holdings Ltd. (TSX-V: CYO) ("CY"
or the "Company"), a value-added supplier of apparel and fashion products to
leading international brands and retailers, today announced that Shanghai Mao
Yuan Garments Co., Ltd. ("Mao Yuan"), a wholly owned indirect subsidiary of
CY, has established a RMB17.5 million (C$2.67 million) revolving overdraft
credit facility and a US$4 million (C$4.6 million) trade finance credit
facility with the Shanghai Branch of HSBC.
The overdraft facility is guaranteed by Huge Best International Limited
("Huge Best"), also a wholly owned subsidiary of CY and the parent company of
Mao Yuan, supported by a pledge of a deposit of US$2.4 million placed with the
lender in Hong Kong. Interest on the facility is the lending rate stipulated
by the People's Bank of China ("PBOC") applicable to a six month loan period,
plus 2%. The current effective rate is 5.67% per annum. The term is three
months, subject to review and renewal.
The trade finance credit facility, including both pre-shipment and
post-shipment financing, is guaranteed by the Company. Interest on the
facility will be charged at 1.75% per annum over the 3-month Singapore
Interbank Money Market Offer Rate (SIBOR). The current effective interest rate
is 7.1% per annum.
The Company also announces that it has retired its previous US$5 million
pre-shipment credit facility with Maple Trade Finance Inc. The amount
outstanding prior to repayment was approximately US$3.4 million.
The new credit facilities are an improvement to the Company's capital
resources, further supporting CY's ongoing working capital requirements, with
pricing that is more favourable to the Company than its prior credit facility.
About CY Oriental Holdings Ltd.
CY Oriental Holdings Ltd. is a Canadian incorporated, China-based
manufacturer and value-added supplier of apparel and fashion products to
leading international brands and retailers. CY owns and operates manufacturing
facilities in Shanghai, China, and is in the process of constructing its
second manufacturing facility in the city of Tengzhou, China. The Company's
ready-made products include a broad range of high-quality garments, including
woven casual wear, woven formal wear, denims and knit junior sportswear.
The TSX Venture Exchange Inc. has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
This press release may contain forward-looking statements, relating to
the Company's operations or to the environment in which it operates, which are
based on CY Oriental Holdings Ltd.'s operations, estimates, forecasts and
projections. Forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause actual results, performance or
achievements to be materially different from any future results, performance
or achievements expressed or implied by the forward-looking statements. There
can be no assurance that forward-looking statements will prove to be accurate,
as actual results and future events could differ materially from those
anticipated in such statements. Accordingly, investors should not place undue
reliance on forward-looking statements. Forward-looking statements are
provided as of the date of this press release, and the CY Oriental Holdings
Ltd. assumes no obligation to update or revise them to reflect new events or
For further information:
For further information: John Yuan, Senior Vice President, CY Oriental
Holdings Ltd., Tel: (604) 633-9833, Email: firstname.lastname@example.org; Trevor
Heisler, Investor Relations, The Equicom Group, Tel: (416) 815-0700 ext 270,