Macro Industries, a provider of pipeline and facilities construction and maintenance services to major companies in the oil and gas industry in northeastern B.C. and northwestern Alberta, has entered into a commitment letter with HSBC Bank Canada for the provision of $145 million in new senior secured credit facilities.

HSBC has committed to structure and arrange the new credit facilities comprising a $65 million three-year revolving credit facility and a $80 million letter of credit facility, of which collectively $65 million will be provided by HSBC.

HSBC has arranged for a syndicate of lenders to provide the balance of the credit facilities. HSBC will act as lead arranger, bookrunner and administration agent. Closing is expected to occur by April 30, 2019.

After closing, the company will have the right, subject to customary conditions, to increase the amount of the revolving facility by up to $20 million and to increase the letter of credit facility by up to $10 million, bringing the total credit facilities to a maximum of $175 million, by securing increased commitments from one or more of the initial lenders or by securing one or more new lenders.

Macro has secured multiple significant projects in pipeline and facilities construction. The new revolving facility will provide enhanced flexibility and essential funding support as the company realizes upon its large-scale project opportunities. The secured credit facility is intended to facilitate the issuance of letters of credit to support qualifying projects.

The company’s obligations under the credit facilities will be secured by a first priority ranking security interest in all property and assets of the company and of its material subsidiaries.