Macro Enterprises announced the successful closing of its new $115 million senior credit facilities. The new credit facilities comprise a $65 million committed three-year revolving operating credit facility pursuant to a credit agreement with TD Bank, National Bank of Canada and Export Development Canada and a separate agreement with TD Bank for the provision of a $50 million letter of credit facility supported by an EDC guarantee. Macro’s obligations under the credit agreement are secured in first priority against all the assets of the company and of its material subsidiaries.

Macro said TD Bank acted as lead arranger, sole bookrunner and administration agent for the syndicate of lenders.

The company has the right, subject to customary conditions, to increase the amount of the operating facility up to $20 million by securing increased commitments from one or more of the initial lenders or by securing one or more new lenders.

Amounts borrowed under the operating facility will primarily be in the form of prime rate, U.S. base rate and LIBOR advances, letters of credit or bankers’ acceptances at varying interest rates. The margin above those rates payable by the company will vary based on the company’s total funded debt to EBITDA ratio, as defined in the credit agreement.

The TD Bank letter of credit facility allows for the issuance of letters of credit by TD Bank on behalf of Macro subject to EDC coverage under the EDC guarantee. It contains customary covenants and conditions, but does not contain any financial tests or negative covenants.

Macro continues to pursue strategically significant pipeline and facilities construction contracts for proposed LNG projects and for other projects in the oil and gas industry. The revolving operating facility will provide enhanced flexibility and essential funding support as the company works to realize on those large-scale potential growth opportunities. The letter of credit facility is intended to facilitate the issuance of letters of credit to support qualifying projects.

Fort St. John, BC-based Macro’s core business is providing pipeline and facilities construction and maintenance services to major companies in the oil and gas industry in northeastern British Columbia and northwestern Alberta.