Business
Algoma Central Corporation - Closes $260 Million Credit Facility
Algoma Central Corporation - Closes $260 Million Credit Facility
About this update from Algoma Central Corporation
[{"type":"text","content":"\n\n\n\nNov. 10, 2009 (Canada NewsWire Group) -- TORONTO, Nov. 10 /CNW/ -- Algoma Central Corporation announces that it completed on November 9, 2009 a two-year $260 million credit facility with a syndicate of six financial institutions. The financial institutions include The Bank of Nova Scotia, Canadian Imperial Bank of Commerce, Bank of America, N.A., JP Morgan Chase, N.A., HSBC Bank Canada and Laurentian Bank of Canada.This credit facility replaces the current $110 million revolving facility previously held by the Corporation. The new facility consists of a $200 million non-revolving term loan facility and a $60 million revolving loan facility. There are no required repayments during the term of the facility.This financing facility combined with forecasted cash flows will be sufficient to meet the Corporation's existing capital commitments of approximately $144 million, repay the amount outstanding on the existing revolving facility of approximately $80 million and meet the Corporation's working capital requirements.The capital asset purchase commitments relate to the following:- Construction of three 16,500 deadweight petroleum product tankers atJiangxi Jiangzhou Union Shipbuilding Ltd. in China. These vessels areexpected to be delivered in late 2010 and early 2011 and haveremaining commitments of approximately $59 million.- Construction of two maximum Seaway sized self-unloading forebodieswhich will be attached to the refurbished and upgraded aft-ends of theAlgobay and another vessel at Chengxi Shipyard in China. TheCorporation's share of the remaining commitments for these vesselswhich are expected to be delivered in late 2009 and in 2010 isapproximately $29 million.- Construction of two 25,000 deadweight petroleum product tankers atNantong Mingde Shipyard in China. These vessels are expected to bedelivered in mid 2010 and early 2011 and have remaining commitments ofapproximately $56 million.In addition to the new facility, the Corporation also has two existing secured, non-revolving term loans totalling $37.5 million at November 9, 2009.Algoma Central Corporation, with its unrelated partner in Seaway Marine Transport, is the largest operator of dry-bulk vessels on the Great Lakes - St. Lawrence Seaway. Algoma Tankers operates seven product tankers throughout the Great Lakes to the Eastern Seaboard. The Corporation has fi...