Business
Badger Income Fund increases existing credit facility and grows its corporate operations
Badger Income Fund increases existing credit facility and grows its corporate operations.
About this update from Badger Infrastructure Solutions Ltd
[{"type":"text","content":"\n\n\n\nSymbol: BAD.UN (TSX)\n\n\nCALGARY, July 16 /CNW/ - Badger Income Fund ("Badger") is pleased to\nannounce it has renewed its extendable revolving credit facility with the\nToronto Dominion and increased the amount available under the facility from\n$20 million to $30 million. The increase in the facility was required in order\nto finance the acquisition of the previously announced $4.0 million\nacquisition of Benko Sewer Service in Eastern Canada and three Operating Areas\nfrom Badger's local Operating Partners. The recent transactions converting\nthree franchise areas to corporate areas brings the number of corporate run\ntrucks to 85 and the number of Operating Partner trucks to 228 as at June 30,\n2007. Badger will operate corporate operations where it makes good sense for\nmarket development or business reasons. In operating corporate locations\nBadger is entitled to 100% of the revenues and is responsible for 100% of the\ncosts. The increase in the facility will also provide financing for Badger's\ncapital expenditure program and general corporate purposes.\n\n\nBadger Income Fund is an open-ended trust that is North America's largest\nprovider of non-destructive excavating services. Badger traditionally works\nfor contractors and facility owners in the utility and petroleum industries.\nOur key technology is the Badger Hydrovac, which is used primarily for safe\ndigging in congested grounds and challenging conditions. The Badger Hydrovac\nuses a pressurized water stream to liquefy the soil cover, which is then\nremoved with a powerful vacuum system and deposited into a storage tank.\nBadger manufactures its truck-mounted hydrovac units.\n\n\nBadger Income Fund's business model involves the provision of excavating\nservices through two distinct entities: the Operating Partners (franchisees in\nthe United States and agents in Canada), and Badger Corporate. Badger\nCorporate works with its Operating Partners to provide Hydrovac service to the\nend user. In this partnership, Badger provides the expertise, the trucks, and\nNorth American marketing and administration support. The Operating Partners\ndeliver the service by operating the equipment and developing their local\nmarkets. All work is invoiced by Badger and then shared with the Operating\nPartner based upon a revenue sharing formula. In certain location...