TSX Venture Exchange Symbol "BRY"
EDMONTON, Oct. 9 /CNW/ - Bri-Chem Corp. ("Bri-Chem") (TSX Venture Exchange: BRY), a leading Canadian wholesale distributor of industrial drilling fluids, steel products and services, today announced the approval of a $40 million credit facility ("Facility") with HSBC Bank Canada.
The renewed and amended Facility consists of a $35 million operating loan, increased from $25 million, and a new $5 million acquisition loan which will be utilized to repay the current higher interest bearing $3 million subordinate loan with HSBC Capital. Pricing for the Facility is at prime, with a sliding scale increase based on debt to equity covenant ratios. The Facility contains the usual positive and negative covenants and certain financial ratio requirements.
"We are delighted to continue our relationship with HSBC Bank Canada and the fact that we were able to increase our credit facilities and the flexibility of their conditions is a testament to our sound balance sheet," said Bri-Chem's Chairman Don Caron. "With this Facility, and our strong operating cash flow, we can continue to fully support our current and future growth initiatives."
About Bri-Chem
Bri-Chem is a wholesale distributor of industrial drilling fluid supplies and steel products and services to the oil and gas and construction industries. Bri-Chem provides over 100 domestic and foreign drilling fluid products to customers throughout Alberta, British Columbia and Saskatchewan and distributes drill pipe, carbon steel welded pipe, carbon steel seamless pipe, stainless steel welded pipe, stainless steel seamless pipe, tubing & casing, sucker rods, galvanized steel products as well as fittings and flanges. Bri-Chem's customers operate in a wide range of industries, including oil & gas, manufacturing, forestry, agriculture, construction, and mining.
Forward-Looking Statements
Certain statements contained in this press release, including statements which may contain words such as "could", "should", "expect", "anticipate", "believe", "will", and similar expressions and statements relating to matters that are not historical facts are forward-looking statements. Such forward-looking statements involve known and unknown risks and uncertainties which may cause the actual results, performances or achievements of Bri-Chem 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 oil and gas activity levels, political and economic conditions, and the demand for products provided by Bri-Chem.
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