CALGARY, July 16, 2015 /CNW/ - Stuart Olson Inc. (TSX: SOX, SOX.DB.A) ("Stuart Olson" or the "Company") today announced that it has negotiated improved terms and conditions and a three year extension to its revolving credit facility (the "Revolver").
The Toronto-Dominion Bank and HSBC Bank of Canada (HSBC) are co-lead arrangers and joint bookrunners on the Revolver, which now consists of a $155 million credit facility syndicated by seven lenders from the existing facility and a $20 million operating facility provided by HSBC. The combination of these two facilities provides the Company with maximum available borrowing capacity of $175 million, as compared to $167.4 million under the previous terms of the Revolver. The syndicated portion of the facility continues to include a $75 million accordion feature. The maturity date of the Revolver has been extended to July 16, 2020.
Material changes to the Revolver include the elimination of the former Working Capital ratio and the Senior Debt to EBITDA ratio financial covenants. The Revolver continues to include existing financial covenants related to interest coverage and total debt to EBITDA. The Interest Coverage ratio covenant remains the same at not less than 3:1 and the Debt to EBITDA ratio covenant has been reduced by 0.25 such that it shall not exceed 3:1, with a temporary increase to 3.25:1 for a period of two quarters following the completion of a material acquisition. These amendments are expected to expand the Company's available borrowing capacity, if needed, to support operations, finance capital expenditures and support growth strategies. The amendments also provide the Company with additional flexibility in terms of its ability to make investments and provide loans without securing approval from the syndicated lenders, by increasing the limit from $10 million to $25 million.
The amended and restated Revolver containing all of the foregoing changes and certain other non-material changes will be filed under the Company's SEDAR profile at www.sedar.com.
About Stuart Olson Inc.
Stuart Olson Inc. provides building construction, commercial and industrial electrical contracting and industrial insulation services to an array of public and private sector clients. Stuart Olson operates office locations throughout British Columbia, Alberta, Saskatchewan, Manitoba and Ontario. Stuart Olson common shares and convertible debentures are listed on the Toronto Stock Exchange under the symbols "SOX" and "SOX.DB.A", respectively.
Forward Looking Information
This press release contains certain statements that may constitute forward-looking information within the meaning of applicable securities laws. Often, but not always, forward-looking information can be identified by the use of such words as "may", "will", "expect", "believe", "plan", "intend", "estimate", "outlook", "forecast", "should", "anticipate" and other similar terminology, including statements concerning possible or assumed future results. This forward-looking information in this press release includes, without limitation, the statements related to Stuart Olson's expectations regarding the amendments to the Revolver. Forward-looking information is based on management's reasonable assumptions, analysis and estimates in respect of its experience and perception of trends, current economic conditions, government policies and expected developments, as well as other material factors that it considers to be relevant at the time of making such statements.
The forward-looking information in this press release is included solely for the purpose of assisting investors in understanding the Company's financial position and the results of its operations as at the date hereof. By its nature, forward-looking information involves known and unknown risks and uncertainties, which give rise to the possibility that management's assumptions, analysis and estimates will be incorrect and that the Company's anticipated results will not be achieved. Although the Company believes that the statements with respect to forward-looking information are reasonable and current, such statements should not be interpreted as a guarantee of future performance or results, and will not necessarily be an accurate indication of whether or not such results will be achieved. Forward-looking information is necessarily subject to a number of factors that may cause actual results to differ materially from those results implied by the expectations suggested by such information. Those factors include, without limitation, the risks and uncertainties described in the Company's Annual Information Form available under the Company's profile at www.sedar.com. Readers are encouraged to consider the foregoing risks and other factors carefully when evaluating the forward-looking information and are cautioned not to place undue reliance upon such information when making investment decisions.
The forward-looking information in this press release is current to the date hereof, and is subject to change following such date. While the Company may elect to do so, unless required by applicable law, it undertakes no obligation to update this information to reflect new information or circumstances at any particular time.
SOURCE Stuart Olson Inc.
For further information: Daryl Sands, Executive Vice President and Chief Financial Officer, Stuart Olson Inc., (403) 685-7777, Email: [email protected]