ENTREC announced that it closed a new $240 million senior secured asset-based credit facility with a syndicate of lenders led by Wells Fargo Capital Finance Canada. The syndicate of lenders also includes The Bank of Nova Scotia, Canadian Western Bank, The Toronto-Dominion Bank and National Bank of Canada.

The ABL facility replaces ENTREC’s previous senior debt facilities and will be used to fund future capital expenditures and business acquisitions and for general corporate purposes.

“We are very pleased to enter into this strategic relationship with Wells Fargo, one of the world’s leading asset-based lenders, and build on our existing strong relationships with our other banking partners to put this ABL Facility in place,” said Jason Vandenberg, ENTREC’s CFO. “This facility is covenant light with a borrowing base that increases as our business grows making the ABL Facility a perfect fit with our business. The customized financing provided by Wells Fargo demonstrates the strong value in our equipment fleet and will provide us with significant financial flexibility to continue to execute our growth strategies.”

The facility has a five-year term and requires payments of interest only. Amounts borrowed bear interest, at ENTREC’s option, at bank prime or bankers’ acceptance rates, plus a credit spread based on a sliding scale.

The amount available under the facility is calculated monthly based upon a specified percentage of eligible equipment and trade accounts receivable, less applicable reserves. ENTREC currently has excess borrowing capacity of approximately $69 million available for use. Total borrowing capacity will increase further as ENTREC acquires additional property, plant and equipment secured under the ABL Facility.

The facility is subject to compliance with springing financial covenants.

ENTREC is a provider of heavy lift and heavy haul services with offerings encompassing crane services, heavy haul transportation, engineering, logistics and support.