Business
Bri-Chem Announces Amendment and Increase to Senior Credit Facility
Edmonton, Alberta--(Newsfile Corp. - December 21, 2022) -  Bri-Chem Corp.  ( TSX: BRY ...
About this update from Bri-chem Corp.
[{"type":"text","content":"Bri-Chem Announces Amendment and Increase to Senior Credit FacilityEdmonton, Alberta--(Newsfile Corp. - December 21, 2022) -  Bri-Chem Corp. (TSX: BRY) (\"Bri-Chem\" or \"Company\") , a leading North American oilfield chemical distribution and blending company, is pleased to announce the amendment of its senior credit facility (\"ABL Facility\") with the Canadian Imperial Bank of Commerce (\"CIBC\"). The borrowing base has been amended and increased to $37.5 million from $25 million to better accommodate inventory stockpiling in support of the expected increase in North American business activity, the $3.0 million availability block, imposed on the previous facility, has been removed and the tangible net worth covenant has been replaced with a fixed charge coverage ratio covenant of 1.0, tested on a rolling 12-month basis. The ABL Facility is committed until October 31, 2024.The ABL Facility bears interest in two tiers, either at the Canadian prime rate plus 0.50% or bankers' acceptance and SOFR rate plus 2.00%, or when in the last 20% of average availability for a fiscal quarter, at the Canadian prime rate plus 0.75% or bankers' acceptance and SOFR rate plus 2.25%. The ABL Facility is secured by a general security agreement covering all present and after acquired inventory and receivables, as well as a postponement of claims from related parties. There is a standby fee of 0.25% on unused amounts of the ABL Facility. \"We are very pleased that we have the opportunity to increase our ABL Facility with CIBC,\" said Don Caron, Chief Executive Officer of Bri-Chem. \"The support exhibited by CIBC over the past several years has been unwavering and we appreciate having them as our senior financial partner. The increase in funds will be resourcefully deployed as we move into an anticipated busy Q1 2023.\"About Bri-ChemBri-Chem has established itself, through a combination of strategic acquisitions and organic growth, as the North American industry leader for wholesale distribution and blending of oilfield drilling, completion, stimulation and production chemical fluids. We sell, blend, package and distribute a full range of drilling fluid products from 26 strategically located warehouses throughout Canada and the United States. Additional information about Bri-Chem is available at www.sedar.com or at Bri-Chem's website a...