CALGARY, Jan. 24, 2012 /CNW/ - Winalta Inc. (Winalta or the Company) is pleased to announce that, effective January 24, 2012, it has entered into a new $15 million revolving, interest only, term facility with Alberta Treasury Branches (ATB). The new facility replaces Winalta's $15 million non-revolving term facility. There has been no change in the interest rate for the new facility which remains at prime + 3% per annum. Winalta has made no changes to its revolving operating facility, which has a limit of $3.0 million, all of which is available and $nil is drawn.
Through 2011, Winalta continued to add to its rental fleet with cash from operations. The Company's new credit facility, which does not require principal payments, will increase 2012 cash flow allowing for accelerated growth of the Company's rental fleet. Demand for the Company's Wellsites and Dedicated Geologist Lab Units outstripped supply through 2011 and these two types of units will comprise the majority of Winalta's 2012 build program. Winalta has secured line space with two manufacturers for increased production of Wellsites and Dedicated Geologist Lab Units in 2012.
Winalta Inc., operating under the trade name, Winalta Oilfield Rentals, is an oilfield service provider that specializes in portable industrial rental accommodations, remote offices and Dedicated Geo Labs; servicing the Western Canadian oil and gas Industry.
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, accelerated growth of the Company's rental fleet and demand for the Company's rental units 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 our 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 there from. 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.
For further information:
David Hopley, CFO
Phone: (780) 960-6900
Austin Fraser, Senior Vice President
Phone: (403) 826-5701