Symbol: BAD.UN (TSX)
CALGARY, July 16 /CNW/ - Badger Income Fund ("Badger") is pleased to announce it has renewed its extendable revolving credit facility with the Toronto Dominion and increased the amount available under the facility from $20 million to $30 million. The increase in the facility was required in order to finance the acquisition of the previously announced $4.0 million acquisition of Benko Sewer Service in Eastern Canada and three Operating Areas from Badger's local Operating Partners. The recent transactions converting three franchise areas to corporate areas brings the number of corporate run trucks to 85 and the number of Operating Partner trucks to 228 as at June 30, 2007. Badger will operate corporate operations where it makes good sense for market development or business reasons. In operating corporate locations Badger is entitled to 100% of the revenues and is responsible for 100% of the costs. The increase in the facility will also provide financing for Badger's capital expenditure program and general corporate purposes.
Badger Income Fund is an open-ended trust that is North America's largest provider of non-destructive excavating services. Badger traditionally works for contractors and facility owners in the utility and petroleum industries. Our key technology is the Badger Hydrovac, which is used primarily for safe digging in congested grounds and challenging conditions. The Badger Hydrovac uses a pressurized water stream to liquefy the soil cover, which is then removed with a powerful vacuum system and deposited into a storage tank. Badger manufactures its truck-mounted hydrovac units.
Badger Income Fund's business model involves the provision of excavating services through two distinct entities: the Operating Partners (franchisees in the United States and agents in Canada), and Badger Corporate. Badger Corporate works with its Operating Partners to provide Hydrovac service to the end user. In this partnership, Badger provides the expertise, the trucks, and North American marketing and administration support. The Operating Partners deliver the service by operating the equipment and developing their local markets. All work is invoiced by Badger and then shared with the Operating Partner based upon a revenue sharing formula. In certain locations Badger has established corporate run operations to market and deliver the service in the local area where it makes business sense to do so.
This press release contains forward-looking statements subject to various risk factors and uncertainties, which may cause the actual results, performances or achievements of Badger to be materially different from any future results, performances or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to, fluctuations in the market for oil and gas related products and services, political and economic conditions, the demand for services provided by Badger, industry competition and Badger's ability to attract and retain key personnel.
The Toronto Stock Exchange has neither approved nor disapproved the
information contained herein.
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