Zedcor Energy signed a $13.5 million credit facility with ATB Financial. The facility is comprised of a $3 million operating loan facility, a $2.5 million term loan facility and a new $8.0 million equipment finance facility.

The $8.0 million equipment finance loan will be used to finance 75% of the purchase of new rental assets for which there is strong demand. This facility can be drawn in tranches, is amortized over 36 months, bears interest at a rate of 6.1% and is repayable in equal monthly installments of principal and interest over the term.

The operating loan is a revolving facility that bears interest at a rate of prime plus 3.3% and is secured by the company’s accounts receivable. The term facility will mature in two years, bears interest at a rate of prime plus 3.3% and is secured by a shareholder guarantee. Monthly interest payments are required over the term of the loan with a bullet payment at maturity.

The company also renewed the loan and security agreement with Maynbridge Capital in the amount of $17.5 million for an additional six months with an option to renew for an additional six months at the satisfaction of the lender.

Ian McKinnon, president and CEO, stated, “This new refinancing is the next step in our strategy to strengthen our balance sheet and reduce our cost of capital, while also financing new growth opportunities which we expect to deliver positive cash flow.”