- Banking Facility Increased from $60.0 Million to $80.0 Million
- Five Year Banking Facility Matures June 2023
VANCOUVER, British Columbia, July 03, 2018 (GLOBE NEWSWIRE) -- Tree Island Steel Ltd. (the “Company” or “Tree Island”) (TSX:TSL) announced today that it has successfully renewed its senior banking facility on more favourable terms with Wells Fargo Capital Finance Corporation Canada (“Wells Fargo”). The five year Senior Secured Revolving Facility (the “Facility”) has been increased to $80 million, comprised of a $60 million revolver and a $20 million term loan for financing existing machinery and equipment and future capital expenditures.
Under the terms of the Facility, interest is charged at variable rates based on the Canadian and/or US Prime rate and the applicable benchmark interbank rate. For the revolving facility, up to $60 million may be borrowed in Canadian and/or US dollars, with the amount advanced under the revolving facility limited to a defined percentage of inventories, accounts receivable and real estate, less certain reserves. In addition, up to $20 million may be borrowed as term debt in Canadian and/or US dollars. The existing term debt will be rolled into a new term loan, with up to $10 million available to finance future capital expenditures.
The Facility is secured by a first charge over Tree Island’s assets, supported by guarantees and pledges, and requires that certain covenants be met by Tree Island.
Dale R. MacLean, President and CEO of Tree Island, commented, “We are pleased to be continuing our long relationship with Wells Fargo, who have been instrumental in supporting our Company since 2010.”
“This renewed five year $80 million credit facility provides Tree Island with prudent and effective use of funds for the working capital and expansion capital needs of Tree Island,” commented Amar Doman, Chairman of the Board of Directors of Tree Island.
About Tree Island Steel
Tree Island Steel, headquartered in Richmond, British Columbia, since 1964, through its four operating facilities in Canada and the United States, produces wire products for a diverse range of industrial, residential construction, commercial construction and agricultural applications. Its products include galvanized wire, bright wire; a broad array of fasteners, including packaged, collated and bulk nails; stucco reinforcing products; concrete reinforcing mesh; fencing and other fabricated wire products. The Company markets these products under the Tree Island®, Halsteel®, K-Lath®, TI Wire® and Tough Strand® brand names.
For more information, please contact:
Ali Mahdavi
Investor Relations & Capital Markets
(416) 962-3300
email: amahdavi@treeisland.com
Website: www.treeisland.com