– Increased Borrowing Capacity with Improved Terms and Covenants –
TSX Symbol: SQP
MISSISSAUGA, ON, June 29, 2015 /CNW/ - Strongco Corporation (TSX: SQP) announced today that it has renewed and expanded its operating facility with HSBC Bank to further strengthen the Company's borrowing capability in support of its growth strategy.
The new three-year committed credit facility was renewed well ahead of the previous facility's expiration in October 2015, and effectively consolidates Strongco's Canadian and U.S. bank facilities. The new agreement provides improved terms and covenants for Strongco and an increase in the borrowing capacity under the Company's operating lines to approximately Cdn$40 million, as well as US$4 million in mortgage financing for the Company's properties in the United States.
"We are pleased with the ongoing support from our banking partner, HSBC Bank," said Robert Dryburgh, President and Chief Executive Officer of Strongco. "Consolidating these facilities with increased borrowing limits and more favourable terms has improved our financial flexibility."
About Strongco Corporation
Strongco Corporation is a major multiline mobile equipment dealer with operations across Canada and in the United States, operating through Chadwick-BaRoss, Inc. Strongco sells, rents and services equipment used in diverse sectors such as construction, infrastructure, mining, oil and gas, utilities, municipalities, waste management and forestry. The Company has approximately 750 employees serving customers from 27 branches in Canada and five in the United States. Strongco represents leading equipment manufacturers with globally recognized brands, including Volvo Construction Equipment, Case Construction, Manitowoc Crane, including National and Grove, Terex Cedarapids, Terex Finlay, Terex Fuchs, Terex Trucks, Ponsse, Fassi, Sennebogen, Konecranes and SDLG. Strongco is listed on the Toronto Stock Exchange under the symbol SQP.
This news release contains forward-looking statements that involve assumptions and estimates that may not be realized and other risks and uncertainties. These statements relate to future events or future performance and reflect management's current expectations and assumptions which are based on information currently available to the Company's management. The forward-looking statements include but are not limited to: (i) the ability of the Company to meet contractual obligations through cash flow generated from operations, (ii) the expectation that customer support revenues will grow following the warranty period on new machine sales and (iii) the outlook for 2015. There is significant risk that forward-looking statements will not prove to be accurate. These statements are based on a number of assumptions, including, but not limited to, continued demand for Strongco's products and services. A number of factors could cause actual events, performance or results to differ materially from the events, performance and results discussed in the forward looking statements. The inclusion of this information should not be regarded as a representation of the Company or any other person that the anticipated results will be achieved and investors are cautioned not to place undue reliance on such information. These forward-looking statements are made as of the date of this news release, or as otherwise stated and the Company does not assume any obligation to update or revise them to reflect new events or circumstances.
SOURCE Strongco Corporation
For further information: J. David Wood, Vice-President and Chief Financial Officer, 905.670.5100, [email protected], strongco.com