Vertex Resource Group entered into an agreement with a syndicated group of senior lenders led by HSBC Bank Canada to provide the company with $70 million senior secured credit facilities for a three-year term.
The agreement provides an additional $20 million accordion facility available to support future growth initiatives of the company. All loans are being provided in Canadian dollars and come with customary covenant terms.
The facilities will replace existing credit facilities and support the company’s ability to capitalize on both organic and acquisition opportunities as they arise while maintaining a prudent approach to leverage. It is anticipated, starting in 2019, that the refinancing will reduce the company’s overall interest rate and expense, resulting in annual cost savings of approximately $2 million.
Established in 1976, Alberta-based Vertex is a provider of environmental and environmentally focused industrial services.
