North American Construction Group expanded and extended its senior secured credit facility with the National Bank of Canada.
The amendment process commenced in September 2020, led by National Bank of Canada. With this agreement in place, North American Construction Group expects liquidity to remain well above $100 million for the duration of the agreement.
“We would like to take this opportunity to thank each of our syndicate partners for their ongoing support,” Jason Veenstra, CFO of North American Construction Group, said. “It was encouraging to have all existing members extend their relationship and at the same time we are excited to introduce a new member. This low-cost facility provides the liquidity and term needed for our business as we look to finish strong in 2020 and prepare for the opportunities in 2021 and beyond.”
The term of the credit facility is committed for three years and matures on Oct. 8, 2023, with an option to extend on an annual basis. The credit facility increases North American Construction Group’s borrowing capacity to $325 million with an ability to increase maximum borrowings by an additional $50 million, subject to certain customary conditions. The existing allowance for equipment financing of up to $150 million over and above the facility limit will continue, providing supplemental borrowing flexibility.
