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TD Bank to Provide $115MM in New Facilities to Macro Enterprises

May 26, 2015, 08:08 AM
Filed Under: Construction

Macro Enterprises Inc. has entered into a commitment letter with The Toronto-Dominion Bank ("TD Bank") for the provision of $115 million in new senior secured credit facilities. TD Bank has committed to structure and arrange the new credit facilities comprising a $65 million three-year revolving credit facility, of which up to $30 million will be provided by TD Bank, and a $50 million letter of credit facility.

TD Bank has committed to use commercially reasonable efforts, but without any obligation, to arrange a syndicate of lenders to provide the balance of the credit facilities. TD Bank will act as lead arranger, bookrunner and administration agent. Its commitment is subject to customary terms and conditions, including the condition that the balance of the facilities are provided by the other participants in the syndicate. Closing is expected to occur by July 15, 2015.

After closing, the company will have the right, subject to customary conditions, to increase the amount of the revolving facility by up to $20 million, bringing the total credit facilities to a maximum of $135 million, by securing increased commitments from one or more of the initial lenders or by securing one or more new lenders.

Macro is strategically pursuing multiple significant projects in pipeline and facilities construction. The revolving facility will provide enhanced flexibility and essential funding support as the company works to realize on those large-scale potential growth opportunities. The secured letter of credit facility is intended to facilitate the issuance of letters of credit to support qualifying projects.

The company's obligations under the credit facilities will be secured by a first priority ranking security interest in all property and assets of the company and of its material subsidiaries.

Macro's core business is providing pipeline and facilities construction and maintenance services to major companies in the oil and gas industry in northeastern B.C. and northwestern Alberta. The Company's corporate office is in Fort St. John, British Columbia. Its shares are listed on the TSX Venture Exchange under the symbol MCR.

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