(TSX: BUI)
WINNIPEG, MB, Dec. 23,
2024 /CNW/ - Buhler Industries Inc. (Buhler
Industries or the Company) is pleased to announce that it has
entered into a new credit facility with Citi allowing the Company
to borrow up to $60 million with an
additional uncommitted accordion of up to $20 million for total availability of up to
$80 million. The new asset-based
lending facility has a term of three years and is extendable
subject to approval by the lenders. The loan is subject to a
maximum draw and based on a borrowing base calculated as a
percentage of eligible accounts receivable and inventory. The new
credit facility replaces the Company's previously held credit
facility which was paid out in its entirety in July 2024.
The credit facility will be used to finance operations including
investment in research and development. The facility is secured by
a general security agreement and assignment of specific receivables
and inventory in Canada and the United States.
Furthermore, Buhler Industries has already received a
$45 million credit facility with
Farm Credit Canada (FCC). Under the terms of the agreement,
FCC provided a $35 million dollar mortgage to the
Company. The Company has already drawn $25
million to repay its line of credit in July. A further
draw of $10 million is for operations and/or the
repayment of related party debt. The mortgage is amortized
over a 15-year term and has no principal repayment in the first
year. In addition, FCC will provide a $10
million revolving loan to the Company for investment in
capital expenditures.
About Buhler Industries
Buhler Industries is
headquartered in Winnipeg, Manitoba, Canada and is a publicly traded
Company on the TSX (TSX: BUI). The Company manufactures and
distributes its product through several brand names including
Versatile and Farm King. The Versatile line of equipment consists
of tractors and tillage. Farm King supplies augers, mowers, bale
carriers, snowblowers, and compact implements. The Company has
manufacturing facilities and warehouses in
both Canada and the United
States.
About Citi
Citi is a preeminent banking partner for
institutions with cross-border needs, a global leader in wealth
management and a valued personal bank in its home market of
the United States. Citi does
business in more than 180 countries and jurisdictions, providing
corporations, governments, investors, institutions and individuals
with a broad range of financial products and services.
Additional information may be found
at www.citigroup.com | X: @Citi |
LinkedIn: www.linkedin.com/company/citi |
YouTube: www.youtube.com/citi |
Facebook: www.facebook.com/citi
Forward-looking statements: Certain statements made above
contain forward-looking statements including, but not limited to,
statements concerning possible or assumed future results of
operations of the Company. Forward-looking statements represent the
Company's intentions, plans, expectations and beliefs, and are not
guarantees of future performance. Such forward-looking statements
represent Buhler Industries current views based on information as
at the date of this report. They involve risks, uncertainties and
assumptions and the Company's actual results could differ, which in
some cases may be material, from those anticipated in these
forward-looking statements. Factors that could cause results to
differ from those expected include, but are not limited to: the
terms, availability and costs of acquiring raw materials and the
ability to pass on price increases to customers; ability to
negotiate contracts with new customers or renew existing customer
contracts with less favorable terms; timely response to changes in
customer product needs and market acceptance of our products; the
potential loss of business or increased costs due to customer or
vendor consolidation; competitive pressures, including new product
development; industry capacity, and changes in competitors'
pricing; ability to maintain or increase productivity levels;
ability to contain or reduce costs; foreign currency exchange rate
fluctuations; changes in governmental regulations, including
environmental, health and safety; changes in Canadian and foreign
income tax rates, income tax laws and regulations. Unless otherwise
required by applicable securities law, Buhler Industries disclaims
any intention or obligation to publicly update or revise this
information, whether as a result of new information, future events
or otherwise. The Company cautions investors not to place undue
reliance upon forward-looking statements.
SOURCE Buhler Industries Inc.
