Macro Enterprises Inc. Announces Successful Closing of $115 Million Senior Credit Facilities
FORT ST. JOHN, BRITISH COLUMBIA--(Marketwired - Sept. 15, 2015) - Macro Enterprises Inc. (TSX VENTURE:MCR) (the "Company" or "Macro") is pleased to announce the successful closing of its new $115 million senior credit facilities. The new credit facilities comprise a $65 million committed three-year revolving operating credit facility pursuant to a Credit Agreement with The Toronto-Dominion Bank ("TD Bank"), National Bank of Canada and Export Development Canada ("EDC") and a separate agreement with TD Bank for the provision of a $50 million letter of credit facility supported by an EDC guarantee. Macro's obligations under the Credit Agreement are secured in first priority against all the assets of the Company and of its material subsidiaries.
The Company has the right, subject to customary conditions, to increase the amount of the operating facility by up to $20 million by securing increased commitments from one or more of the initial lenders or by securing one or more new lenders.
Amounts borrowed under the operating facility will primarily be in the form of prime rate, U.S. base rate and LIBOR advances, letters of credit or bankers' acceptances at varying interest rates. The margin above those rates payable by the Company will vary based on the Company's total funded debt to EBITDA ratio, as defined in the Credit Agreement.
The Credit Agreement contains usual and customary covenants and conditions, including that Macro on a consolidated basis will meet certain specified financial tests and that, without the lenders' consent, it will not pay distributions to shareholders in excess of $3 million in any fiscal year, including amounts paid in connection with the Company's outstanding normal course issuer bid.
TD Bank acted as lead arranger, sole bookrunner and administration agent for the syndicate of lenders.
The TD Bank letter of credit facility allows for the issuance of letters of credit by TD Bank on behalf of Macro (subject to EDC coverage under the EDC guarantee). It contains customary covenants and conditions, but does not contain any financial tests or negative covenants.
Macro continues to pursue strategically significant pipeline and facilities construction contracts for proposed LNG projects and for other projects in the oil and gas industry. The revolving operating facility will provide enhanced flexibility and essential funding support as the Company works to realize on those large-scale potential growth opportunities. The letter of credit facility is intended to facilitate the issuance of letters of credit to support qualifying projects.
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. Information on the Company's principal operations can be found at www.macroindustries.ca
Certain statements in this news release regarding the intended use of the new credit facilities may include forward-looking information that involves various risks and uncertainties. These risks and uncertainties include the risk that the Company is not the successful bidder or is otherwise not able to realize on potential growth opportunities identified by it. These risks and uncertainties may cause actual results to differ from information contained herein, and there can be no assurance that such forward-looking statements will prove to be accurate. These statements are based on the expectations of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, the Company assumes no obligation to update forward-looking statements should circumstances or management's expectations change.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
(September 15, 2015 - 5:10 PM EDT)
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