Avcorp Industries entered into agreements to extend the term and increase certain credit facilities with its current lender and closed a new $3.5 million senior secured loan with Panta Holdings.
The credit facilities are supported by a major and material customer of the company by way of guarantee. The amended loan agreements and standby facility credit agreement extended the term of the loan and customer guarantees to 2021 maturity and under certain condition can be further extended to 2023.
Panta has agreed to provide Avcorp an additional $3.5million secured loan. The extension of the corporation’s credit facilities and the additional facility provide the corporation with the necessary liquidity to fulfill its current backlog of orders to its customers and supports the company’s recent efforts to re-structure operations, win long- term production contracts and strengthen its relationships with key customers.
“These amended and restated credit agreements provide to the company the financial stability for the next few years and show the continued support of our largest shareholder, Panta,” said Avcorp Group CEO, Amandeep Kaler.
The Vancouver-based Avcorp Group designs and builds major airframe structures for some of the world’s leading aircraft companies, including BAE Systems, Boeing, Bombardier, Lockheed Martin and Subaru Corporation.
