ST. JOHN'S, July 19, 2013 /CNW/ - Today Rutter Inc. (TSX: RUT) announced that it has entered into an amending agreement with its lenders to modify the terms of its operating loan and term debt.
The lenders have agreed to: (i) extend the maturity of the Company's operating loan ("Loan A") from April 30, 2014 to September 30, 2016; (ii) to extend the maturity of the Company's term loan ("Loan B") from June 30, 2014 to September 30, 2016 and to (iii) reduce the monthly installments repayable on Loan B from $150,000 to $75,000. All other terms of the loans remain the same and no additional fees have been paid as a result of the change in terms.
As of today's date, Loan B has a principal outstanding balance of $3,750,000 and the Company has not drawn down any of its $2,000,000 available funds under Loan A.
"We are pleased to have these changes in terms in place well in advance of the April 2014 and June 2014 maturities, removing any uncertainty regarding the renewal of these instruments in the coming year" stated Fraser Edison, President and CEO of Rutter Inc. "The reduction of our Loan B monthly payments also gives us additional cash flow flexibility, reducing our need to draw down upon the $2,000,000 operating loan."
About Rutter Inc. - Rutter is an enterprise focused on providing innovative technologies and engineering solutions. Rutter's global network supplies technologies to improve efficiency and safety in the marine, defense, transportation, oil and gas sectors from its headquarters in the Province of Newfoundland and Labrador. For more information see www.rutter.ca
About OceanWaveS GmbH - OceanWaveS is an enterprise focused on technology development for the real time measurement of directional ocean wave spectra. OceanWaveS' customer base includes operators in offshore oil development interested in operational safety and efficiency, navies pursuing greater understanding of ship stability and motion prediction, and coastal monitoring stations concerned with vessel traffic management and coastline erosion monitoring. For more information see www.oceanwaves.org
This press release may contain forward-looking statements that involve risks and uncertainties. These statements reflect current expectations and are subject to a number of risks and uncertainties including but not limited to, change in technology and general market conditions. Due to the many risks and uncertainties, Rutter Inc. cannot assure that forward-looking statements that may be contained in this press release will be realized.
The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
SOURCE: RUTTER INC.
For further information:
Karen Snook, Chief Financial Officer and Corporate Secretary, Rutter Inc. +1 709 576 6666