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
contact@enterprisegrp.ca
780-418-4400
Forward-Looking Information
This news release may contain certain forward-looking information, as defined under applicable Canadian securities legislation, that is not based on historical fact, including without limitation statements containing the words "believes", "anticipates", "plans", "intends", "will", "should", "expects", "continue", "estimate", "forecasts" and other similar expressions. In particular, this news release includes forward-looking information relating to the Facility and the Company's intention to pursue acquisition opportunities and to purchase shares pursuant to the normal course issuer bid. Actual results, events or developments could be materially different from those expressed or implied by these forward-looking statements. There is no assurance that any of the events or expectations will occur or be realized. By their nature, forward-looking statements are subject to numerous assumptions and risk factors including those discussed in the Company's Annual Information Form and most recent MD&A which are incorporated herein by reference and are available through SEDAR at www.sedar.com. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement and are made as of the date hereof. The Company disclaims any intention and has no obligation or responsibility, except as required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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