RS Technologies entered into a credit agreement with JPMorgan Chase Bank, Toronto Branch, for a five-year term that provides for senior secured debt financing. Funds under the credit agreement will be used to purchase a 237,000 square foot production facility located on 22 acres of land in Utah and to finance the acquisition of capital equipment that will increase production capacity of RS’s composite utility poles.
The credit agreement provides for two committed credit facilities consisting of a delayed draw term loan facility and a revolving credit facility, both maturing in April 2025. The bank also provided RS with a demand overdraft facility. The credit facilities are secured by substantially all present and after acquired property of RS Technologies and its subsidiaries.
“The company is pleased to announce these important steps in its aggressive growth trajectory — it is critical for RS to respond to market demand for greater volumes of its unique poles,” David Werklund, chair of RS Technologies, said. “We feel that the support of JPMorgan Chase together with Werklund Growth Fund LP should inspire confidence amongst RS’s existing customers and those utilities considering the long-term merits of RS’s composite poles.”
RS designs and manufactures composite utility poles.
Werklund Growth Fund is a private equity and venture capital fund managed by the Werklund Family Office.