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TSX Symbol "BRY"
EDMONTON, AB, July 17, 2020 /CNW/ - Bri-Chem Corp.
("Bri-Chem" or "Company") (TSX: BRY), a North American
oilfield chemical distribution and blending company, is pleased to
announce the closing of a $6.25
million term loan (the "BCAP Loan") with Canadian Imperial
Bank of Commerce ("CIBC") under the Canadian Government Business
Credit Availability Program ("BCAP") and that we have reached an
agreement with CIBC to extend the term of our Asset Based Lending
Facility ("ABL Facility") to October 31,
2021. The Company and Greypoint Capital Inc. ("Greypoint")
have also agreed to certain amendments and additional terms to the
Company's current subordinated term loan with Greypoint in the
aggregate principal amount of $7,866,667 ("Sub Debt Loan").
ABL Facility and Sub Debt Loan
Bri-Chems' senior secured ABL Facility, which was scheduled to
mature on October 31, 2020 has been
extended through to October 31, 2021.
The Company and CIBC have agreed to amend certain conditions and
covenants of the ABL Facility as of the date
hereof.
In addition, the Company and Greypoint have agreed to certain
amendments to the Sub Debt Loan, including but not limited to a
2.0% payment-in-kind (PIK) interest on the Sub Debt Loan until loan
maturity, the amendment of certain financial covenants and the
issuance of 2,500,000 Bri-Chem warrants (the "Warrants") to
Greypoint. The Warrants are exercisable into common shares of
Bri-Chem at a price of $0.10 per
share for a period of 4 years from the date of
issuance.
$6.25 million term loan under
the Canadian Government Business Credit Availability
Program
The BCAP Loan, which is administered by CIBC, is backed by the
Canadian Government under the BCAP. Pursuant to the program,
80% of the principal of the BCAP Loan is guaranteed by The Business
Development Bank of Canada. The
BCAP Loan bears interest at a rate of 2.25% above CIBC's prime
lending rate. The term of the BCAP Loan is 10 years and is interest
only for the first 12 months. Under the terms of BCAP, the proceeds
of the BCAP Loan must be used to finance operations and can be used
to make normally scheduled interest and principal payments, as well
as ordinary-course debt payments. Proceeds from the BCAP Loan
cannot be used to refinance existing debt.
About Bri-Chem
Bri-Chem has established itself, through a combination of
strategic acquisitions and organic growth, as the North American
industry leader for wholesale distribution and blending of oilfield
drilling, completion, stimulation and production chemical fluids.
We sell, blend, package and distribute a full range of drilling
fluid products from 26 strategically located warehouses throughout
Canada and the United States. Additional information
about Bri-Chem is available at www.sedar.com or at Bri-Chem's
website at www.brichem.com.
To receive Bri-Chem news updates send your email
to ir@brichem.com.
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accepts responsibility for the adequacy or accuracy of this
release.
SOURCE Bri-Chem Corp.