RBC Provides Nordex Explosives Facilities
Nordex Explosives entered into agreements with the Royal Bank of Canada (RBC) to provide Nordex with increased credit facilities.
The facility available to Nordex in January of 2014 was up to Cdn $2.2 million which included an operating line and/or letters of credit of up to Cdn $1.2 million and a second facility for revolving term loans of up to Cdn $1 million.
Under the terms of the new agreements the facility for operating lines andor letters of credit have been increased from Cdn $2.2 million to Cdn $3 million and the revolver are increased from $1.6 million to Cdn $1.8 million
In addition, RBC has agreed to consolidate Cdn $1.1 million of long-term higher interest debt previously secured by other lenders. The consolidation loan is amortized over a 4-year period at an interest rate of 3.59%. The new consolidation loan with RBC will accelerate payment of this debt and result in interest payment savings of Cdn $81,882 per year.
Jim Taylor, president and CEO of Nordex stated, “The increase in credit facilities to us at more favourable rates reflects our ongoing North American growth strategy and increased confidence in our ability to achieve our goals and objectives.”
Nordex Explosives is a Canadian-based manufacturer and distributor of explosives for the mining, quarry and construction industries since 1970.