Wells Fargo Leads ENTREC ABL Credit Facility Extension

ENTREC Corporation, a heavy haul transportation and crane solutions provider, announced a five year extension to its senior secured asset-based credit facility with a syndicate of lenders led by Wells Fargo Capital Finance Canada. The syndicate of lenders also includes Bank of Nova Scotia, Canadian Western Bank and Toronto-Dominion Bank.

“We are very pleased to continue our strategic relationship with Wells Fargo and our other banking partners,” said Jason Vandenberg, ENTREC’s chief financial officer. “This extension provides long-term stability to our equipment financing needs and provides us the financial flexibility we need to execute on our growth strategies over the coming years.”

The ABL facility now matures on October 10, 2022 and will continue to require payments of interest only. Along with the extension, a number of amendments were made to the ABL Facility, including, among other items:

  • A voluntary reduction in the ABL facility to $172.5 million from $240 million previously, which will result in lower stand-by fees;
  • The removal of the accordion feature to increase the ABL facility by a further $75 million;
  • Revisions to the sliding scale pricing levels. These revisions will generally result in a 75 basis point increase in the interest rate applicable at each pricing level;
  • A requirement to maintain a minimum excess borrowing capacity of $15.0 million at all times; and

Acheson, Alberta-based ENTREC is a heavy haul transportation and crane solutions provider to the oil and natural gas, construction, petrochemical, mining and power generation industries.

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