TSX Venture Exchange
EDMONTON, Aug. 28 /CNW/ - Bri-Chem Corp. ("Bri-Chem") (TSX Venture
Exchange: BRY) a leading Canadian wholesale distributor of industrial drilling
fluids, steel products and services, today announced the approval of a $40
million credit facility ("Facility") with HSBC Bank Canada.
The renewed and amended Facility consists of a $40 million operating
loan, increasing to $45 million for the period December 1, 2009 to April 30,
2010. Pricing for the Facility is at prime plus 0.75%, with a sliding scale
increase based on debt to tangible net worth covenant ratios. The Facility
contains the usual positive and negative covenants and certain financial ratio
requirements. In addition, Bri-Chem previously anticipated utilizing a $5
million acquisition loan to repay its $3.0 million subordinate loan with HSBC
Capital, however, the acquisition loan was not implemented and the subordinate
loan with HSBC Capital is currently being repaid in monthly installments.
Bri-Chem is a wholesale distributor of industrial drilling fluid supplies
and steel products and services to the oil and gas and construction
industries. Bri-Chem provides over 100 domestic and foreign drilling fluid
products to customers throughout Alberta, British Columbia and Saskatchewan
and distributes drill pipe, carbon steel welded pipe, carbon steel seamless
pipe, stainless steel welded pipe, stainless steel seamless pipe, tubing &
casing, sucker rods, galvanized steel products as well as fittings and
flanges. Bri-Chem's customers operate in a wide range of industries, including
oil & gas, manufacturing, forestry, agriculture, construction, and mining.
Forward Looking Statements
Certain statements contained in this press release, including statements
which may contain words such as "could", "should", "expect", "anticipate",
"believe", "will", and similar expressions and statements relating to matters
that are not historical facts are forward looking statements. Such forward
looking statements involve known and unknown risks and uncertainties which may
cause the actual results, performances or achievements of Bri-Chem to be
materially different from any future results, performances or achievements
expressed or implied by such forward looking statements. Such factors include,
but are not limited to, fluctuations in oil and gas activity levels, political
and economic conditions, and the demand for products provided by Bri-Chem.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
For further information:
For further information: Don Caron, T: (780) 420-6885, F: (780)