Magellan Aerospace Corporation announces extension of Credit Facility

About this update from Magellan Aerospace Corporation

[{"type":"text","content":"\n\n\n\nTORONTO, May 23 /CNW/ - Magellan Aerospace Corporation ("Magellan" or the\n"Company") announces that it has obtained a 30-day extension to the current\nterm of its Credit Agreement to June 24, 2008.\n\n\nAs part of the extension, the Corporation is in negotiations with the\nbank to increase the Credit Facility limit by $20,000,000 and to extend the\nagreement term to May 23, 2009. To date the negotiations have been positive\nwith respect to proposed amendments to the Credit Facility. The Corporation is\nalso in discussions with the Chairman of the Board of the Corporation to\nextend his guarantee for the additional term and to cover the additional\namount of Credit Facility. Magellan expects to use a portion of the additional\ncredit facility capacity to retire the Bridge Loan for $15,000,000, due\nJuly 31, 2008, which it borrowed in January 2008 to partially fund the\nrepayment of the 8.5% convertible unsecured subordinated debentures on\nJanuary 31, 2008.\n\n\nMagellan Aerospace Corporation is one of the world's most integrated and\ncomprehensive aerospace industry suppliers. Magellan designs, engineers, and\nmanufactures aeroengine and aerostructure assemblies and components for\naerospace markets, advanced products for military and space markets, and\ncomplementary specialty products. Magellan is a public company whose shares\ntrade on the Toronto Stock Exchange (TSX: MAL), with operating units\nthroughout Canada, the United States and the United Kingdom.\n\n\nForward Looking Statements:\n\n\nThis press release contains information and statements of a\nforward-looking nature and is based on assumptions and uncertainties as well\nas on management's reasonable evaluation of future events. These statements\nare not guarantees of future performance and involve risks and uncertainties\nthat are difficult to predict, and/or are beyond the Corporation's control. A\nnumber of important factors could cause actual outcomes and results to differ\nmaterially from those expressed in these forward-looking statements.\n\n\n%SEDAR: 00002367E\n\n\n","length":2138,"tagName":"div"}]

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