Business
Hardwoods Distribution Inc. Announces Renewal of Canadian Credit Facility
Trading Symbol: Toronto Stock Exchange - HWD LANGLEY, BC, Dec. 1, 2011 /CNW/ - Hardwo...
About this update from Adentra Inc
[{"type":"text","content":"\n\n\n\n\n\nTrading Symbol: Toronto Stock Exchange - HWD\n\n\nLANGLEY, BC, Dec. 1, 2011 /CNW/ - Hardwoods Distribution Inc.\n (\"Hardwoods\" or the \"Company\") (TSX: HWD) today announced the renewal\n of the $15.0 million revolving credit facility available to its wholly\n owned Canadian operating subsidiary, Hardwoods Speciality Products LP\n (\"Hardwoods LP\").\n\n\nThe term of the renewed revolving credit facility has been extended to\n August 7, 2016. Highlights of the facility renewal include:\n\n\nHardwoods LP may terminate the facility at any time without prepayment\n penalty\n\n\nThe rate of interest charged for Prime-based borrowings was reduced to\n Prime plus 50 basis points (previously Prime plus 200 bps)\n\n\nThe rate of interest charged for Bankers Acceptance (\"BA\") based\n borrowings was reduced to BA plus 200 basis points (previously BA plus\n 350 bps)\n\n\nStandby fees charged on unused borrowing availability was reduced to 25\n basis points (previously 50 bps)\n\n\nHardwoods LP is subject to a fixed charge coverage ratio (calculated on\n a trailing twelve month basis as the ratio of earnings before interest,\n taxes, depreciation and amortization less cash taxes less capital\n expenditures less distributions, divided by interest plus principal\n payments on capital lease obligations) of not less than 1.1 to 1. \n However, under the terms of the renewal, this covenant shall not apply\n so long as the unused availability under the credit line is in excess\n of $2.0 million (previously the fixed charge coverage ratio applied at\n all times)\n\n\nNo closing fee was paid related to the credit facility renewal\n\n\nAll other terms of the renewed credit facility are substantially\n unchanged from Hardwoods LP's previous revolving credit facility as\n described in the Hardwoods Annual Information Form dated March 24,\n 2011, which is available on www.sedar.com.\n\n\n\"We continue to enjoy strong service from our Canadian bankers, are\n pleased to have renewed our credit arrangements on more favourable\n terms with them through to August 2016,\" commented Lance Blanco,\n Hardwoods' President and CEO.  \"Hardwoods will benefit from improved\n borrowing rates and a more flexible covenant under this Canadian credit\n facility. Combined with our U.S. credit facility which we renewed\n earlier this year, we have...