OAKVILLE, ON, Feb. 27, 2012 /CNW/ - Vicwest Inc. (the "Company") (TSX: VIC, VIC.DB) today reported that its wholly owned subsidiary, Vicwest Corporation, has entered into a $100 million revolving credit facility, inclusive of a $10 million swing line, led by National Bank Financial with participation from National Bank of Canada, HSBC Bank of Canada, Royal Bank of Canada, Business Development Bank of Canada and Export Development Canada. This new agreement replaces a $65 million credit facility.
The term of the new credit facility extends until December 30, 2015, and will be available to finance future acquisitions, capital expenditures and working capital. The interest cost of the new facility is based on certain financial ratios and varies in accordance with borrowing rates in Canada and in the United States.
In announcing the agreement, Colin Osborne, President and Chief Executive Officer said: "The proactive renewal of our bank credit facility for a longer term and for a higher amount supports our ongoing business growth and will enable us to pursue the many market opportunities available for our expanding product solutions. We are very pleased to partner with the members of this syndicate, outstanding financial institutions who understand and support our domestic and international growth strategies."
"The terms of our new arrangement are substantially more competitive than our prior credit facility," added Kent Harris, Chief Financial Officer, "and as such we have enhanced our financial flexibility at lower overall cost to the business."
ABOUT VICWEST INC.
Vicwest Inc. is a leading manufacturer and distributor of building construction products, and steel containment products for agricultural grain, fertilizer and liquid storage. Through its Vicwest Building Products division, the Company fabricates and markets metal roofing, siding and other metal building products under the trade names Vicwest, Mercury Metals, Valley Truss & Metal, RCA Metal and AWIP-Vicwest USA. The Company's Westeel Storage Solutions division manufactures storage solutions for agricultural grain and fertilizer, as well as liquid storage tanks and accessories. These products are manufactured and distributed under the trade names Westeel, Northern Steel Industries and NSI. Through a global alliance, Westeel distributes Buhler Industries-manufactured grain handling equipment in Canada under the Westeel brand while Buhler Industries markets and sells Westeel-manufactured products through its US distribution network. In Canada, Westeel also represents Skandia, Europe's most advanced elevator and conveyor grain handling systems. With approximately 1,100 dedicated employees and strategically located manufacturing facilities, the Company delivers superior quality products and excellent service to customers in chosen markets. Vicwest Inc. is a member of the S&P/TSX SmallCap Index. For more information, visit www.vicwestinc.com.
Certain statements in this press release constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements include, but are not limited to, management's beliefs, plans, estimates, and intentions, and similar statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "outlook", "objective", "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "should", "plans" or "continue", or similar expressions suggesting future outcomes or events. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those contemplated by such statements. Readers are encouraged to review the most recently filed Management's Discussion and Analysis and other disclosure documents filed by the Company with Canadian securities regulatory agencies and commissions. Readers are cautioned not to place undue reliance on the Company's forward-looking statements. The forward-looking statements contained herein are made as of the date of this press release and except as required by applicable law, the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
For further information:
President & Chief Executive Officer
Tel: (905) 469-5700
Fax: (905) 825-1090