North American Construction Group finalized an extension and amendment of its senior secured credit facility. The maturity date has been extended by one year to Oct. 3, 2027. In addition to the extension, the capacity has been increased to provide greater flexibility in operating the company’s Australian and Canadian businesses._x000D_
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“We would like to take this opportunity to once again thank National Bank Financial and our syndicate partners for their ongoing support,” Jason Veenstra, chief financial officer of North American Construction Group, said. “It is encouraging to have all existing members extend. This low-cost facility is the foundation of our debt financing and provides the liquidity and term needed for our business.”_x000D_
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The credit facility provides lending capacity of $525 million (from $475 million) through Canadian and Australia dollar tranches and allows for an additional $400 million of secured equipment financing from third party providers (from $350 million). The facility is comprised of a revolver with no scheduled repayments and is not governed by a borrowing base that limits available borrowings. Financial covenants are tested quarterly on a trailing four quarter basis and are generally consistent with the previous agreement except for the fixed charge ratio being replaced with an interest coverage ratio.
Forward for Specialty Finance
