Eacom Timber Corporation (TSXV:ETR)
Historical Stock Chart
From Jul 2019 to Jul 2024
![Click Here for more Eacom Timber Corporation Charts. Click Here for more Eacom Timber Corporation Charts.](/p.php?pid=staticchart&s=TX%5EETR&p=8&t=15)
VANCOUVER and MONTREAL, Nov. 25 /CNW/ --
VANCOUVER and MONTREAL, Nov. 25 /CNW Telbec/ - EACOM Timber Corporation (TSX VENTURE: ETR; "EACOM" or the "Company")
today reported that it has entered into a three-year, $50 million
revolving credit facility agreement with GE Capital in Canada. The
facility will be used to fund working capital and general corporate
purposes.
Mr Rick Doman, President and CEO of EACOM Timber Corporation, said "we
are very pleased to enter into this agreement with GE Capital. GE
Capital's experience in structuring transactions in the forestry sector
was instrumental in identifying a flexible financial structure that
would not only answer our immediate needs, but would also support
future growth opportunities as we pursue our vision of becoming a
global softwood lumber Company."
"It is very satisfying to see our customers take full advantage of GE's
deep domain expertise," said Ellis Gaston, General Manager, GE Capital
Corporate Finance Canada. "We look forward to supporting EACOM's
continued growth."
Facility Details
Under the terms of the facility, amounts drawn and to be repaid are
determined by a borrowing base calculation that fluctuates with
eligible receivable and inventory balances (net of reserves).
Borrowings can be in $Cdn or $US. Interest rates on Canadian dollar
borrowings are based on either banker's acceptances or the Canadian
chartered bank prime rate, at EACOM's choice, plus an applicable
margin. That portion of the $50 million commitment that is not drawn
will be subject to a stand by fee and upon closing, EACOM was required
to pay a closing fee. The facility is secured by a first priority,
perfected security interest on all existing and future assets of
EACOM. EACOM is subject to customary covenants, including a fixed
charge coverage ratio if the amount available for borrowing falls below
a certain threshold.
About EACOM
EACOM Timber Corporation is a TSX-V listed company. EACOM owns seven sawmills and an equity interest in an eighth sawmill,
all located in Eastern Canada and related tenures. The mills are
Timmins, Nairn Centre, Gogama and Ear Falls in Ontario and Val-d'Or,
Ste-Marie and Matagami in Quebec. The equity interest is in the Elk
Lake sawmill located in Ontario. The sawmills in Ear Falls, Ontario,
and Ste-Marie, Quebec, are currently idled. EACOM also owns one idle mill in Big River Saskatchewan. EACOM also
owns a remanufacturing facility and a 50% interest in an "I" joist
plant.
The TSX Venture Exchange has neither approved nor disapproved the
contents of this press release. All directorships are subject to TSX
Venture Exchange approval.
Forward-Looking Statements
All statements in this news release that are not based on historical
fact are "forward-looking statements." While management has based any
forward-looking statements contained herein on its current
expectations, the information on which such expectations were based may
change. These forward-looking statements rely on a number of
assumptions concerning future events and are subject to a number of
risks, uncertainties, and other factors, many of which are outside of
our control that could cause actual results to materially differ from
such statements. Such risks, uncertainties, and other factors include,
but are not necessarily limited to, those set forth under the captions
"Risk Factors" of the Filing Statement dated January 8, 2010 and the
current MD&A for EACOM Timber Corporation on file with the Canadian
Securities Commissions.
pMedia relationsbr/ (514) 917-1040/p