Omni-Lite Industries Canada has refinanced its current $700,000 senior bank credit facility with the entering of a new three-year, $3 million revolving line of credit facility with City National Bank, an RBC company.
Proceeds from the initial drawdown were used to repay in full and terminate the company’s existing line of credit agreement. In addition, the new revolving credit facility provides for the expansion of the company’s borrowing capacity to $3 million along with a December 2022 maturity.
Under the terms of the new credit agreement, the company has agreed to certain conditions and financial covenants including fixed charge coverage and maximum leverage.
In addition, the company has received cash proceeds from the company’s former CEO of approximately $400,000 in payment in full of its outstanding loan receivable. Such proceeds will further support the company’s financial flexibility and strength, in conjunction with the new revolving line of credit facility, to pursue strategic, operational, and other opportunities to drive long-term value creation.
“We are pleased to be working with John Tyson, senior vice president of City National Bank in Boston, as our new banking partner. They have the resources and range of capabilities to support our growth plans, and we are grateful for their support and confidence in Omni-Lite Industries, its management, strategic plan and prospects,” said Carl Lueders, Omni-Lite Industries’ CFO.
Omni-Lite Industries Canada develops and manufactures mission critical, precision components utilized by Fortune 100 companies in the aerospace and defense industries.