National Bank Financial, Others Ink $100 Million for Vicwest
Vicwest Inc. reported that its wholly owned subsidiary, Vicwest Corporation, has entered into a $100 million revolving credit facility, inclusive of a $10 million swing line, led by National Bank Financial with participation from National Bank of Canada, HSBC Bank of Canada Royal Bank of Canada, Business Development Bank of Canada and Export Development Canada. This new agreement replaces a $65 million credit facility.
The term of the new credit facility extends until December 30, 2015, and will be available to finance future acquisitions, capital expenditures and working capital. The interest cost of the new facility is based on certain financial ratios and varies in accordance with borrowing rates in Canada and in the United States.
In announcing the agreement, Colin Osborne , president and CEO, said: “The proactive renewal of our bank credit facility for a longer term and for a higher amount supports our ongoing business growth and will enable us to pursue the many market opportunities available for our expanding product solutions. We are very pleased to partner with the members of this syndicate, outstanding financial institutions who understand and support our domestic and international growth strategies.”
“The terms of our new arrangement are substantially more competitive than our prior credit facility,” added Kent Harris, CFO, “and as such we have enhanced our financial flexibility at lower overall cost to the business.”
Vicwest Inc. is a manufacturer and distributor of building construction products, and steel containment products for agricultural grain, fertilizer and liquid storage.