Tornado Global Hydrovacs entered into a $3 million revolving operating line of credit and a $4.8 million term loan with TD Bank.
Tornado Global Hydrovacs will use a portion of the facility to repay the balance of a non-interest-bearing vendor take-back mortgage secured against the company’s facility located in Red Deer, AB. The company will use the balance of the facility for general working capital purposes.
Under the conditions of the agreement governing the facility, the operating line bears interest at a floating rate equal to the prime rate per annum established by TD, currently at 2.45%, plus 0.75%. Repayments under the operating line will be made on demand. In addition, the term loan bears interest at a fixed rate of 2.83%, with advances repayable, together with interest, on a monthly basis until maturity.
The facility is secured by a first-ranking security interest in all of the present and future undertakings, property and assets of the company and its subsidiary, Tornado Global Hydrovacs (North America), and a first-ranking mortgage charge on the Red Deer facility.
“The TD facility greatly improves our working capital, which will be required to finance an increasingly robust outlook for demand to purchase Tornado hydrovacs,” Bill Rollins, CEO of Tornado Global Hydrovacs, said. “This financing facility is a follow-on initiative to the recent announcement where we significantly strengthened our executive management team by adding Brett Newton as president and COO. Brett’s 20 years of experience in the hydrovac industry is expected to also contribute to our bullish outlook for demand for Tornado hydrovacs.”
