Enterprise Group Inc T.E

Credit Facility News PR

[TimeBuilder]

Enterprise Group Announces New $30 Million Credit Facility with Waygar Capital and Ninepoint Partners

Newsfile Corp - Thu Sep 9, 6:31AM CDT

 

St. Albert, Alberta--(Newsfile Corp. - September 9, 2021) - Enterprise Group, Inc. (TSX: E) (the " Company " or " Enterprise "), a consolidator of services to the energy sector that is focused primarily on specialized equipment rental, is pleased to announce that is has entered into a senior secured credit facility (the " Facility ") with Waygar Capital Inc. , as agent for Ninepoint Canadian Senior Debt Master Fund L.P.

The Facility is comprised of a $30 million revolving line of credit, bears interest at 10% per annum, is secured by a first charge on assets, and is subject to certain borrowing restrictions. The Facility is effective September 7, 2021 and has a term of three years with an option to extend for an additional 12 months.

The initial draw will be $10.8 million to close the existing credit facility which was due to end in 2022 and to cover working capital during the transition between facilities.

Leonard D. Jaroszuk, President & CEO comments, "Although the interest rate is higher than the Company's existing credit facility, lower costs associated with compliance, appraisals, audits, legal, and staffing, will assist in offsetting the higher interest rate. In addition, greater access to funds more than offsets any remaining cost increase." Mr. Jaroszuk adds, "We are excited to begin working with Waygar Capital. Our mutual enthusiasm for growth in our business and the energy sector will allow Enterprise Group to develop opportunities that are currently forming in our market."

Enterprise's clients are substantially tier one energy producers who are experiencing significant increases in cash flows due to higher commodity prices. Increased cash flows are starting to find their way to improved development activities in the field. The new Facility allows the Company to pursue asset purchases, enhance capital expenditures and diversify its acquisition strategy in an effort to enhance revenue growth and earnings.

Further to the Company's news release dated August 26, 2021, which announced the renewal of the Normal Course Issuer Bid (" NCIB "), Mr. Jaroszuk comments, "We will continue to aggressively buy back the Company's shares within the parameters outlined in the NCIB filing."

About Enterprise Group, Inc.

Enterprise Group, Inc. is a consolidator of services to the energy sector. The Company's focus is primarily on specialized equipment rental. The Company's strategy is to acquire complementary service companies in Western Canada, consolidating capital, management, and human resources to support continued growth. More information is available at the Company's website www.enterprisegrp.ca . Corporate filings can be found on www.sedar.com .

For questions or additional information, please contact:

Leonard Jaroszuk: President & CEO, or
Desmond O'Kell: Senior Vice-President
[e-mail]
780-418-4400

[jcw604]

Do you smell something bad with this change? 10% interest rate is too high. Lucky that they don't need to draw on it until the end of next year. Am I right about my reading of the NR?

[Stuckinsand]

Len states decreases costs associated with compliance etc will assist in reducing the costs of the new loan at 10%. Here is a suggestion, why cant Len tell us how much the previous loan cost with all the added fees he references this would give shareholders a true comparison. When there is a lack of transparency speculation fills in the gaps. In this case are shareholders left to wonder if the

[jcw604]

more transparency means more accountability. May be the management want to think that they have the autonomy.

[Stuckinsand]

that is accurate, perhaps they shouldn't be a public company.

[jcw604]

I was surprised that the buyer of the 80,000 shares was TD, because they have been all a long a seller. I don't if they are just covering their shorts. I hope that more are coming.

[Stuckinsand]

lots of assumptions but no question when shorts are being covered could and I stress could be interesting times, could also be a pump and dump plan... remember do your research including the track records of those driving the ship.... the SEDI enquiry may result in nothing or a revelation...

[jcw604]

I think they bought back 204k shares at 24 cent on Sept 17, through the pure exchange. They seemed to be doing it quite actively this quarter.

[Stuckinsand]

if they are buying back shares when will this be reflected in the stock price? or is the price being held artificially low? how was the inquiry with SEDI?

[jcw604]

Apparently, these are all prearranged purchases. You can check https://www.stockwatch.com/Quote/DetailM.aspx?C:E On the different days that there is 100k or more trading volume in the Pure exchange, you can always match a record in sedi https://stockhouse.com/companies/Insiders?symbol=t.e

[jcw604]

For link https://stockhouse.com/companies/Insiders?symbol=t.e , you have to check the Closes button to see the historical trades.

[jcw604]

The Closes button on https://www.stockwatch.com/Quote/DetailM.aspx?C:E rather.

[jcw604]

Popped up today.

[Stuckinsand]

is there something to this? or another dead cats bounce?

[Stuckinsand]

is there something to this? or another dead cats bounce?

[jcw604]

probably an up rising of oil prices that did it. The dead cat is pretty alive. At least now. This time no selling from TD.

[jcw604]

Actually, TD sold 30k, but not many.

[jcw604]

I don't know if it were my complaint, the TD seller stopped selling. Maybe because he was under investigation and his trading account has been frozen. I hope that this rally will sustain, and ended in the 30 cents range. It seems that the buy (national bank) is quite patient and was trying to accumulate more before he pushes the price up even more. The coming week is critical.

[jcw604]

Looks like it is one 10% owner flexing his muscle buying millions of shares for about the a month of time. (Nilsson, Brian). He just filed on Thursday all his transactions. Do you know who he is? I don't think that his buying campaign has ended. I think his is going extremely offensive next week.

[jcw604]

Currently, he has 7,376,966 shares of about 1.9m of value, but the company's MC is only 13m, probably less after the recent buy back, so he will eventually be approaching another limit of 20%, unless he wants to buy it out altogether.

[jcw604]

looks like that the .265 cents order will be cleaned up today.

[jcw604]

Asking 27 cents, probably cleanup too.

[Stuckinsand]

I have to believe anyone that follows prominent business folks from Alberta know about the Nilsson Brothers Lee and Brian. They own some hi profile businesses and commercial properties. They have a reputation of being low profile in both their business and personal lives. They also have a reputation of purchasing distressed and under achieving companies and turning them around...

[jcw604]

I think Enterprise Group has assets worth more than their MC, but the management are simply not making well use of them. If the 2 brothers can just buy them out or simply create a dissenting board to vote out the current CEO, and restructure their management, it can become profitable quickly. JMHO.

[Jacks10]

Any chance we see this going to the 0.50-0.60 range anytime soon?  Been in this for longer than I care to admit and unfortunately in my RRSP, complete dead money for the longest time.  Is there finally hope for this?

[Stuckinsand]

there is always a chance and always hope. however, when I use these strategies I am seldom thrilled with the results

[jcw604]

Jack, I certainly wish that your hope can materialize. It is hard to say. I used to own a restaurant dividend unit that quit giving dividend during the pandemic. The strange thing is that it has risen back above the pre-pandemic level before it even starts to repay dividend, quadrupling the valley. It is a bit irrational, but it can happen.

[jcw604]

Energy prices went crazy. Jacky, I think you have a higher chance to reach your goal.

[jcw604]

Another jump with energy price.

[Stuckinsand]

a jump in energy prices not followed by an increase in Enterprise SP... remember E led the decline in energy prices back in 2014, so not convinced E is directly correlated with energy prices rather questionable management

[jcw604]

It is hard to say if the major oil companies like Suncore, that is their client, will start to open their wallet for new projects because of the higher oil prices or they simply want to enjoy the ride without flooding the market with more oil. It is probably to their advantage to look for ways to lower their per barrel cost, without producing more. However, usually, that is more difficult to

[Stuckinsand]

That story jcw just posted sure doesnt sound promising for E. the reason for the increase in SP is more likely due to a potential purchaser vs increased oil prices. At 0.30 the current price it is still far below what management believes the assets are worth. eliminate the costs of being public and some very generous remuneration the execs receive and the company has a chance on positive eps.

[jcw604]

I agree. However, that could be one of the reasons for the acquisition. I.e. the buyer can already turn the company around by simply eliminating the top management and rearranging some assets through accretive merging. The opening of wallet of Suncore could be a bonus.