EACOM Timber Corporation Secures $50 Million Credit Facility From GE Capital
26 November 2010 - 8:32AM
PR Newswire (Canada)
VANCOUVER and MONTREAL, Nov. 25 /CNW/ -- VANCOUVER and MONTREAL,
Nov. 25 /CNW Telbec/ - EACOM Timber Corporation (TSX VENTURE: ETR;
"EACOM" or the "Company") today reported that it has entered into a
three-year, $50 million revolving credit facility agreement with GE
Capital in Canada. The facility will be used to fund working
capital and general corporate purposes. Mr Rick Doman, President
and CEO of EACOM Timber Corporation, said "we are very pleased to
enter into this agreement with GE Capital. GE Capital's
experience in structuring transactions in the forestry sector was
instrumental in identifying a flexible financial structure that
would not only answer our immediate needs, but would also support
future growth opportunities as we pursue our vision of becoming a
global softwood lumber Company." "It is very satisfying to see our
customers take full advantage of GE's deep domain expertise," said
Ellis Gaston, General Manager, GE Capital Corporate Finance Canada.
"We look forward to supporting EACOM's continued growth." Facility
Details Under the terms of the facility, amounts drawn and to be
repaid are determined by a borrowing base calculation that
fluctuates with eligible receivable and inventory balances (net of
reserves). Borrowings can be in $Cdn or $US. Interest
rates on Canadian dollar borrowings are based on either banker's
acceptances or the Canadian chartered bank prime rate, at EACOM's
choice, plus an applicable margin. That portion of the $50
million commitment that is not drawn will be subject to a stand by
fee and upon closing, EACOM was required to pay a closing
fee. The facility is secured by a first priority, perfected
security interest on all existing and future assets of EACOM.
EACOM is subject to customary covenants, including a fixed charge
coverage ratio if the amount available for borrowing falls below a
certain threshold. About EACOM EACOM Timber Corporation is a
TSX-V listed company. EACOM owns seven sawmills and an equity
interest in an eighth sawmill, all located in Eastern Canada and
related tenures. The mills are Timmins, Nairn Centre, Gogama
and Ear Falls in Ontario and Val-d'Or, Ste-Marie and Matagami in
Quebec. The equity interest is in the Elk Lake sawmill located in
Ontario. The sawmills in Ear Falls, Ontario, and Ste-Marie,
Quebec, are currently idled. EACOM also owns one idle mill
in Big River Saskatchewan. EACOM also owns a remanufacturing
facility and a 50% interest in an "I" joist plant. The TSX Venture
Exchange has neither approved nor disapproved the contents of this
press release. All directorships are subject to TSX Venture
Exchange approval. Forward-Looking Statements All statements in
this news release that are not based on historical fact are
"forward-looking statements." While management has based any
forward-looking statements contained herein on its current
expectations, the information on which such expectations were based
may change. These forward-looking statements rely on a number of
assumptions concerning future events and are subject to a number of
risks, uncertainties, and other factors, many of which are outside
of our control that could cause actual results to materially differ
from such statements. Such risks, uncertainties, and other factors
include, but are not necessarily limited to, those set forth under
the captions "Risk Factors" of the Filing Statement dated January
8, 2010 and the current MD&A for EACOM Timber Corporation on
file with the Canadian Securities Commissions. pMedia relationsbr/
(514) 917-1040/p
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