Entrec ups operating facility, revolver with addition of two lenders

By Toni Weeks

San Diego, Oct. 1 - Entrec Corp. has increased its senior credit facilities with a syndicate of lenders led by Canadian Western Bank, according to a press release.

The facilities consist of a C$20 million operating facility via account overdraft and a revolving term facility, which was increased to C$120 million from C$75 million. Both mature on June 1, 2015.

The operating facility requires interest payments only. Individual draws under the revolving term facility are repayable over a five-year amortization period.

Borrowings initially bear interest at 4.25%, which is based on the bank's prime rate plus a credit spread based on a sliding scale.

The credit facilities are subject to financial covenants and are collateralized by substantially all of Entrec's assets.

The company currently owes C$64.3 million under the revolver. The operating facility is undrawn.

Proceeds will be used to fund Entrec's capital expenditure program and for business acquisitions.

New lenders Toronto-Dominion Bank and Bank of Montreal have been added to the lending syndicate, which also includes Bank of Nova Scotia and Canadian Imperial Bank of Commerce.

Spruce Grove, Alta.-based Entrec provides transportation, lifting and cargo services for the oil and gas, construction, petrochemical, mining and power generation industries.

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