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2009-06-01 14:26:24 CEST 2009-06-01 14:27:32 CEST REGULATED INFORMATION Clearwater Finance Inc. - FyrirtækjafréttirCLEARWATER REPORTS AGREEMENT WITH TERM FINANCING SYNDICATE COMPRISED OF GE CAPITAL IN CANADA, THE PROVINCE OF NOVA SCOTIA, BDC AND EDCAttention Business/Financial Editors CLEARWATER REPORTS AGREEMENT WITH TERM FINANCING SYNDICATE COMPRISED OF GE CAPITAL IN CANADA, THE PROVINCE OF NOVA SCOTIA, BDC AND EDC /Not for distribution to United States or for dissemination in the United States / HALIFAX, June 1/CNW/ - (TSX:CLR.UN, CLR.DB, CLR.DB.A): § Clearwater's management continues to work on securing the funding to repay debt facilities due on June 8, 2009 § Clearwater announces an agreement has been reached with a term financing syndicate for a $57 million, three-year term loan representing an important component of the June 8, 2009 refinancing Today, Clearwater Seafoods Limited Partnership (“Clearwater”) reported that it has reached an agreement for a three-year $57 million term debt facility with a syndicate of lenders as part of a debt refinancing scheduled for June 8, 2009. The syndicate which includes GE Capital, is being arranged by GE Capital Markets (Canada) Ltd. and GE Capital Markets, Inc. (collectively, “GECM”) as co-arranger, The Business Development Bank of Canada (“BDC”), Export Development Canada (“EDC”) and the Province of Nova Scotia, through the Industrial Expansion Fund. This new term debt facility will bear interest at market rates and be secured by mortgages and charges on all property, vessels and interest in licenses of Clearwater and certain of its wholly owned subsidiaries and is structured in two tranches. GE Capital, BDC and EDC will participate in Tranche A in the amount of $15 million, $12.5 million and $12.5 million respectively and will have a first security position on tangible and intangible assets and a second charge on licenses and quotas. The Province of Nova Scotia and BDC will participate in Tranche B, in the amount of $15 million and $2 million respectively, which will have a first security interest on Clearwater's commercial fishing licenses and quotas and a second charge on all other tangible and intangible assets. Both tranches will have a second charge on Clearwater's inventories and receivables. Tranche A will be amortized monthly on the basis of an 8 year period with the balance payable in full at maturity in three years, Tranche B will be repayable in full at maturity in three years. The proceeds from the two facilities will be used as part of the funds needed to repay debt that matures on June 8, 2009. Closing is conditional on certain conditions precedent being met, including completion of GE Capital's final due diligence, the negotiation, execution and delivery of definitive documentation and refinancing of Clearwater's existing working capital revolver. This loan commitment expires June 26th, 2009. Clearwater currently has outstanding approximately Canadian $95 million of debt facilities. Clearwater is confident the debt will be settled at maturity on June 8, 2009 with the proceeds from this new term facility and an asset-based revolving facility arranged by GECM. While the syndication of the asset-based facility is in process, Clearwater remains highly confident that it will be able to secure sufficient funds to complete this refinancing. Closing of the Asset-Based facility is conditional on certain conditions precedent being met, including completion of GE Capital's final due diligence, the negotiation, execution and delivery of definitive documentation and closing the term debt facility. Colin MacDonald, Chairman and Chief Executive Officer commented “The completion of this agreement in what has been one of the toughest credit markets in recent history speaks to the ongoing strength of Clearwater's business model. We wish to express our appreciation to GE Capital in Canada for their commitment to the organization and in particular would like to express our appreciation for the leadership shown by the Province of Nova Scotia, BDC and EDC to ensure successful Nova Scotia based companies continue to have access to capital and support to be competitive and sustainable. We appreciate this support and look forward to concluding this refinancing on June 8, 2009”. David Surrette, Regional Vice President, Atlantic Canada for EDC added"Clearwater is an excellent example of a strong Canadian company that could be helped by EDC's capacity to undertake domestic financing. EDC is happy to be able to bring this much needed capacity to Canadian companies like Clearwater to help alleviate the effects of the credit crunch." About Clearwater Clearwater has operations employing more than 1,200 employees throughout Nova Scotia and is recognized for its consistent quality, wide diversity and reliable delivery of premium seafood, including scallops, lobster, clams, coldwater shrimp, crab and ground fish. Since its founding in 1976, Clearwater has invested in science, people, technology, resource ownership and resource management to preserve and grow its seafood resource. This commitment has allowed it to remain a leader in the global seafood market. For further information: Robert Wight, Chief Financial Officer, Clearwater, (902) 457-2369; Tyrone Cotie, Director of Corporate Finance and Investor Relations, Clearwater, (902) 457-8181. |
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