TRADING SYMBOL: Toronto Stock Exchange - HWD
LANGLEY, BC, Feb. 15, 2013 /CNW/ - Hardwoods Distribution Inc.
("Hardwoods") announced today an amendment (the "Amendment") to the
revolving credit facility available to its' U.S. operating subsidiary,
Hardwoods Speciality Products USLP ("Hardwoods USLP"). The Amendment
increases the maximum borrowings available to Hardwoods USLP under the
credit facility, from US$30 million to US$45 million.
"New residential construction and renovation markets continue to show
signs of significant improvement in the United States, and Hardwoods
USLP's sales are heavily influenced by conditions in these sectors of
the economy," said Lance Blanco, President and CEO. "Based on
improving results in these markets, Hardwoods USLP expects to
experience higher demand for its products well into 2014. Increasing
the size of Hardwoods USLP's credit facility provides additional
flexibility to finance higher working capital requirements, which would
accompany increased levels of sales activity that we expect in the
U.S."
In addition to increasing the size of the credit facility, the Amendment
reduces interest rates payable on borrowed funds by 50 basis points.
The Amendment also updates certain financial covenant and distribution
thresholds to reflect the increased size of the facility, and extends
the maturity date of the facility by one year to May 26, 2016.
About Hardwoods Distribution Inc.
Hardwoods (TSX: HWD) is one of North America's largest wholesale
distributors of hardwood lumber and related sheet good products,
operating a network of 31 distribution centers in the U.S. and Canada.
Forward-Looking Statements
CAUTIONARY STATEMENT REGARDING FORWARD LOOKING INFORMATION
This news release includes forward-looking statements. These involve
known and unknown risks, uncertainties and other factors that may cause
actual results, performance or achievements or industry results to be
materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements.
These forward-looking statements are identified by the use of terms and
phrases such as "anticipate", "believe", "estimate", "expect", "may",
"plan", "will", and similar terms and phrases, including references to
assumptions. Such statements may involve, but are not limited to:
Hardwoods belief that new residential construction and renovation
markets continue to show signs of significant improvement in the United
States, that Hardwoods USLP's sales are heavily influenced by
conditions in these sectors of the economy, and that based on improving
results in these markets Hardwoods USLP expects to experience higher
demand for its products well into 2014; and Hardwoods belief that
increasing the size of Hardwoods USLP's credit facility provides
additional flexibility to finance higher working capital requirements,
which would accompany increased levels of sales activity that Hardwoods
USLP expects in the U.S.
These forward-looking statements reflect current expectations of
management regarding future events and operating performance as of the
date of this news release. Forward-looking statements involve
significant risks and uncertainties, should not be read as guarantees
of future performance or results, and will not necessarily be accurate
indications of whether or not such results will be achieved. A number
of factors could cause actual results to differ materially from the
results discussed in the forward-looking statements, including, but not
limited to: national and local business conditions; political or
economic instability in local markets; competition; consumer
preferences; spending patterns and demographic trends; legislation or
governmental regulation.
Although the forward-looking statements contained in this news release
are based upon what management believes to be reasonable assumptions,
management cannot assure investors that actual results will be
consistent with these forward-looking statements. The forward-looking
statements reflect management's current beliefs and are based on
information currently available.
All forward-looking information in this news release is qualified in its
entirety by this cautionary statement and, except as may be required by
law, Hardwoods undertakes no obligation to revise or update any forward
looking information as a result of new information, future events or
otherwise after the date hereof.
SOURCE: Hardwoods Distribution Inc.
