OTCPK:COPJF - Post by User
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Zorro99on Apr 30, 2014 9:22am
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Post# 22506461
COE refinances
COE refinances
CanAm Refinances Equipment Debt and Obtains Additional Funding from Major US Bank
(via Thenewswire.ca)
Calgary, AB / TNW-ACCESSWIRE / April 30, 2014 / CanAm Coal Corp. (TSXV: COE) ("CanAm" or the "Company") is pleased to announces that is has refinanced substantially all of its equipment loans and secured an additional US $3 million financing package with a major US Bank.
The Company, through its subsidiary Birmingham Coal & Coke Co, Inc., has agreed with its US banking partner to amend its existing equipment financing agreement. The main changes are to increase the principal amount of the loan by US $3 million (with a term of 54 months) and to reset the amortization period for the outstanding amount of the original loan (US $13.2 million outstanding at April 2014) to 48 months. The blended interest rate on the facility is 4.04%. Included in the revised agreement is a new covenant requiring the Company to convert at least $6,500,000 of its 2012, 9.5% debenture to equity prior to July 31, 2014. This represents approximately 50% of the face value of the debenture. The debenture matures in August 2016.
Company President & CEO, Jos De Smedt commented: "We are very pleased with this renewed and increased commitment from our US banking partner. We have developed a great relationship with them since 2012 and certainly, we believe, that this is a clear demonstration of their confidence in our Company and our business plan."
For Further Information:
CanAm Corporate Office:
Jos De Smedt, President & CEO