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Luxor Finalizes C$5.27MM Facility With HSBC Canada

May 05, 2016, 07:34 AM
Filed Under: Building Supply

Luxor Industrial Corporation finalized a credit facility of C$5.275 million with HSBC Bank Canada which includes an Operating Line of C$1.5 million. The credit facility also provides a Standby Letter of Credit/Guarantee Loan facility, a Foreign Exchange Loan facility and a Mastercard facility.

The operating line will be used to finance turnkey framing contracts that have been awarded to the Company’s subsidiary Mill Frame LLC. Turnkey contracts include Luxor supplying all materials and site labor which will be covered by the operating line as well as prefabrication of walls and floors by Luxor’s subsidiary, Mill Frame Inc. Contracts for 2016 exceed C$ 16 million.

Previously Luxor completed insurance coverage with EDC (Export Development Corporation) for any payment defaults for 90% of all product exports sales and 90% of the value of turnkey framing contracts. EDC will approve foreign customers on each contract prior to the insurance taking effect.

Luxor previously announced it was partnering with a Trading House to assist with the financing of the framing materials for the US $6 millionturnkey framing contract for the Heron’s Key project in Gig Harbor, Washington by The Weitz Company. The ability to secure material financing through lumber traders together with the HSBC operating lines decreases the need for Luxor to raise funds through equity financings.

Luxor is involved in the development, engineering, manufacturing and marketing of engineered wood products. In the industrial sector, it manufacturers wood mat products.  In the residential sector it manufactures its patented IBS 2000® engineered floor bridging, fire protected architectural wood products, and FastFrame™ wall components.

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