DALMAC ENERGY INC.TSX Venture: "DAL"
EDMONTON, July 30, 2012 /CNW/ - Dalmac Energy Inc. ("Dalmac"), (the Company), (TSX -V: DAL), a leading provider of fluid hauling and well servicing to the energy industry, today announced that it has entered into a Commitment Letter with PNC Bank Canada Branch, (PNC), for a senior secured finance facility of up to $17 million, with an interest rate considerably lower than the Company's current loan rates.
"In partnership with PNC we are substantially strengthening our balance sheet and reducing our cost of capital," stated John Beasley, CFO of Dalmac. "This financing will provide the Company with much greater financial flexibility to grow our business without dilution to our shareholders."
The Company will use the facility to pay off its existing bank and other long term debt totaling approximately $8.4 million and will have up to $6.5 million available to fund new capital expenditures. The balance of the facility will be available for working capital. Dalmac will have the option to increase the facility to $20 million, subject to lender approval. The facility will have a four year term and is subject to a number of conditions, including completion of security documents and due diligence. The facility is expected to be in place within 30 days.
We seek Safe Harbor.
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SOURCE: Dalmac Energy Inc.
For further information:
John Babic, at (780) 988-8510, by fax at (780) 988-8512 or by e-mail at email@example.com.
John Beasley - CFO - Dalmac Energy
Tel: 780-988-8510 Ext. 227
Doren Quinton - QIS Capital