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Petrowest Announces Refinancing of Credit Facility With GE Capital Canada

February 21, 2013, 07:25 AM

Petrowest Corporation entered into a new three-year, Canadian $50 million syndicated credit facility with GE Capital Canada. The new facility is comprised of two sub-facilities: a $45 million term facility which has been fully drawn and a $5 million capital expenditures facility which is available for one year.

The interest rate for the new facility is, at the election of Petrowest, the discount rate for bankers acceptances plus 4.5% or the prime rate plus 3.5% and is secured by a general security agreement over all present and after-acquired property of each limited partnership in the Petrowest group (Petrowest Civil Services LP, Petrowest Construction LP, Petrowest Environmental Services LP, Petrowest Services Rentals LP and Petrowest Transportation LP), and by unlimited guarantees from each of Petrowest Corporation and Petrowest GP Ltd. The amortization period for the New Facility is six years.

The existing US dollar credit facility (US $30.7 million due in 2016) is being paid out with the proceeds from the New Facility, as will the remaining balances of the secured convertible debentures ($1.8 million in aggregate) originally issued on December 31, 2010.

The existing Canadian dollar term loan due in 2015, in the principal amount of $22 million and secured by a first charge on accounts receivable, remains in place. Petrowest is in discussions with lenders for a revolving operating line of credit which, if successfully completed, will be used to pay out the existing Canadian dollar term loan.

Petrowest is an Alberta-based corporation involved in pre-drilling and post-completion energy services as well as industrial and civil infrastructure projects, gravel crushing and hauling for non-energy sector customers.

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