ST. ALBERT, ALBERTA--(Marketwired - Aug. 11, 2015) - Enterprise Group, Inc. ("Enterprise," or the "Company") (TSX:E) is pleased to announce multiple adjustments to the covenants governing the Company's bank loan facility. These adjustments will further enhance the security of the Company's balance sheet.
As a result, the Company is required to maintain:
- A senior leverage ratio of not greater than 3.25:1.00 beginning June 30, 2015, and 2.50:1.00 beginning March 31, 2016 and each quarter thereafter. Previously, the covenant for this ratio stood at 2.50:1.00 for the balance of 2015.
- A fixed charge coverage ratio of not less than 1.10:1.00 beginning on June 30, 2015, 1.00:1.00 beginning on September 30, 2015, and 1.25:1.00 beginning on March 31, 2016 and each quarter thereafter. Previously, the covenant for this ratio stood at 1.25:1.00 for the balance of 2015.
Cash maintained outside of the bank loan facility is to be not greater than $6,800,000 beginning on July 1, 2015 and not greater than $3,000,000 beginning September 1, 2015 and thereafter. All other terms and conditions of the facility are unchanged.
As at June 30, 2015, Enterprise was in compliance with all financial covenants. The Company monitors these requirements on an ongoing basis and reports on its compliance to its lender on a monthly basis. The Company will provide greater details regarding its current financial position on August 13, 2015, during its disclosure of its financial results for the three-month period ended June 30, 2015.
"These adjustments of our debt covenants represent a proactive step towards bolstering the security of our balance sheet," stated Leonard Jaroszuk, Enterprise's Chief Executive Officer. "While we remain in a strong financial position, the challenges present in our operating environment mandate that we ensure that this position is well protected. The renegotiation of our debt covenants represents a disciplined step towards providing that protection."
Enterprise will release its financial results for the second quarter of 2015 prior to the market open on August 13, 2015. A press release summarizing these results, as well as both financial statements and Management's Discussion & Analysis for the relevant periods, will be available on Enterprise's website (www.enterprisegrp.ca) and SEDAR (www.sedar.com).
About Enterprise Group, Inc.
Enterprise Group, Inc. is a consolidator of construction services companies operating in the energy, utility and transportation infrastructure industries. The Company's focus is primarily construction services and 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. Enterprise acquired of Artic Therm International Ltd. in September 2012, Calgary Tunnelling & Horizontal Augering Ltd. in June 2013, Hart Oilfield Rentals in January 2014, and Westar Oilfield Rentals Inc. in November 2014. More information is available at the Company's website, www.enterprisegrp.ca.
Forward Looking Information
Certain statements contained in this news release constitute forward-looking information. These statements relate to future events or the Company's future performance. The use of any of the words "could", "expect", "believe", "will", "projected", "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Company's current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. The Company's Annual Information Form and other documents filed with securities regulatory authorities (accessible through the SEDAR website www.sedar.com) describe the risks, material assumptions and other factors that could influence actual results and which are incorporated herein by reference. The Company disclaims any intention or obligation to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as may be expressly required by applicable securities laws.