CALGARY, June 5, 2013 /CNW/ - Winalta Inc. ("Winalta" or the "Company") is pleased to announce that, effective June 5, 2013, it has entered into new credit facilities with a financial institution. The new facilities replace Winalta's current credit facilities with the same financial institution and consist of:
- $20.0 million revolving term loan facility, interest only payments, interest rate of prime + 1.50%. Currently the Company has drawn $15.0 million of this facility.
- This loan facility replaces the $15.0 million facility with an interest rate of 1.75%
- $5.0 million evergreen line of credit, interest and principal payments, interest rate of prime + 1.50%. The Company has $5.0 million available on this facility.
- This is a new facility which will be used to finance assets that have specific contractual arrangements with customers.
- $3.0 million operating loan facility (revolving), interest rate of prime + 1.00%. The Company has not drawn any of the operating facility.
- This loan facility replaces a $3.0 million facility with an interest rate of 1.25%
The three facilities all have a maturity date of April 30, 2015.
The new evergreen line of credit is an important component of the Company's plan to continue to pursue its new product line, Intergraded Wellsite Systems (IWS). The IWS was developed to meet the market's demand for better working and living quarters for SAGD and multilateral pad drilling. The IWS enhances the Company's rental fleet with assets that provide a longer term revenue stream.
Winalta Oilfield Rentals, specializes in innovative and high-quality modular buildings for the Western Canadian Oil and Gas Industry. Winalta's rental fleet is comprised of single-unit Wellsites, Integrated Wellsite Systems (IWS), Dedicated Geo Labs, and Drill Camps.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Certain information set forth in this press release, including management's assessment of the potential for increased cash flows, continued growth of the Company's rental fleet, demand for the Company's rental units, the Company's pricing strategy, the impact of the Company's expansion into IWS and the Company's expectation regarding the status of the economy and its impact on the Company, may constitute forward-looking statements. By their nature, forward-looking statements involve material assumptions and are subject to numerous risks and uncertainties, including with respect to market and economic conditions and their impact on the Company's business, some of which, are beyond the Company's control. Readers are cautioned not to place undue reliance on the forward-looking statements as the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and actual results, performance or outcomes could materially differ from those expressed or implied in such forward-looking statements and accordingly, no assurance can be given that any of the events anticipated by forward looking statements will transpire or occur, or if any of them do so, what benefit Winalta will derive therefrom. The Company does not assume the obligation to revise or update this forward-looking information after the date of this release or to revise such information to reflect the occurrence of future unanticipated events, except as may be required under applicable securities laws.
SOURCE: Winalta Inc.
For further information:
Austin Fraser, President
Phone: (403) 826-5701
David Hopley, CFO
Phone: (780) 469-0143