Aveda Transportation and Energy Services announced that it has received commitment letters from a syndicate of lenders led by PNC Bank Canada Branch, and including Royal Bank of Canada, pursuant to which the availability under its current asset-based lending facility will be increased from $75 million to between $115 million to $125 million effective June 30, 2014. The commitments are subject to customary conditions related to completion of appropriate legal documentation and due diligence. The company will pay customary fees on closing.
“We have secured a series of increases to our senior credit facility as we have identified and acted on opportunities to grow our company, particularly in the United States,” said Bharat Mahajan, vice president, Finance and CFO of Aveda. “This latest increase provides us with access to capital that will allow us to act on an array of strategic growth initiatives both organic and acquisitive.”
The company is actively pursuing a number of acquisition opportunities along with several organic growth initiatives.
Aveda provides specialized transportation services and equipment required for the exploration, development and production of petroleum resources in the Western Canadian Sedimentary Basin and in the U.S.