Business
Inventronics Announces Early Repayment of Subordinated Debt
Inventronics Announces Early Repayment of Subordinated Debt.
About this update from Inventronics Limited
[{"type":"text","content":"\n\n\n\nNew Conventional Financing Signals Turnaround Complete\n\n\nCALGARY, April 19 /CNW/ - Inventronics Limited (IVX:TSXV), a designer and\nmanufacturer of custom metal enclosures for the communications, electronics\nand other industries in North America, today announced that it has repaid\n$3,500,000 of subordinated debt from the proceeds of a new loan.\n\n\nThe five year subordinated secured debt was due in full in on\nDecember 31, 2007 and bore interest at 8% per annum. Through arrangements with\nBMO Bank of Montreal, Inventronics has secured a term/demand loan in the\namount of $3,500,000. This new facility is repayable over 76 months with\nmonthly payments that vary over the term. The interest rate is fixed for five\nyears at 6.3%. As part of the overall arrangement Inventronics also has a\n$2,000,000 demand operating facility. None of the operating loan is currently\ndrawn.\n\n\n"This is a very important transaction for Inventronics", said Dan\nStearne, President & CEO. "The subdebt loan was critical five years ago for\nthe survival of the Company. The repayment through conventional lending at a\nfavourable interest rate is a clear signal that the turnaround of the company\nhas been successful. Now with specific cash requirements for repayment and no\nother debt obligations, not even operating debt, we will be able to generate\nfree cash flow."\n\n\nAbout Inventronics\n\n\nInventronics Limited designs and manufactures custom enclosures and other\nproducts for an array of customers in the telecommunications, electronics,\ntraffic controls, electric utilities and computer services industries in North\nAmerica. Inventronics' enclosures are sophisticated products that function as\npermanent packaging to address a variety of customer concerns including\nsecurity, protection from the outside environment, ventilation and thermal\nmanagement, noise abatement, aesthetics and styling, electromagnetic\ncompatibility and component integration. The Corporation owns its ISO\n9001-registered production facility in Brandon, Manitoba, and has sales and\ncorporate offices in Calgary, Alberta.\n\n\nShares of Inventronics are traded on the TSX Venture Exchange under the\nsymbol "IVX" (formerly IVT:TSXV). For more information about the Corporation,\nits products and its services, go to www.inventronics.com....