Winnipeg, Manitoba, January 29, 2010 � Empire Industries Ltd. (TSX-V: EIL) (�Empire� or the �Company�), announced today that it has accepted a $17.5 million Commitment Letter from a Canadian Chartered Bank (the �New Bank�) to provide a centralized $10 million revolving operating facility (�New Operating Facility�) and a $7.5 million term loan (�New Term Loan�) to the Company subject to final legal documentation and completion of due diligence.
The Company�s wholly owned subsidiary, Empire Iron Works Ltd. (�Empire Iron�), currently has a senior secured credit agreement (the �RBC Credit Agreement�) with the Royal Bank of Canada (�RBC�) which includes a revolving operating facility and a $2.4 million term loan. The Company�s wholly-owned subsidiaries, George Third & Son Ltd. and Dynamic Structures Ltd. (the �BC Group�), currently have a senior secured credit agreement (�HSBC Credit Agreement�) with HSBC Bank of Canada (�HSBC�).
The proceeds from the New Operating Facility and New Term Loan will be used initially to repay the amounts owed under the RBC Credit Agreement and the revolving operating facility under the HSBC Credit Agreement. The unused portion of the New Operating Facility will be used for general corporate purposes in the normal course of business including financing future working capital needs.