Winnipeg, Manitoba, March 8, 2010 � Empire Industries Ltd. (TSX-V: EIL) (�Empire� or the �Company�), announced today that it successfully completed a $17.5 million re-financing with Canadian Western Bank, to provide a centralized $10 million revolving operating facility (�New Operating Facility�) and $7.5 million in term debt (�New Term Loans�).
The proceeds from the New Operating Facility and New Term Loans were used to fully repay the amounts owed under a revolving operating facility and term loan with the Royal Bank of Canada and a revolving operating facility with the HSBC Bank of Canada. 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.
The New Term Loans include a $3 million tranche, amortized over 15 years on a straight line basis, with a fixed interest rate of 6.5% over the initial five year term. The second tranche of $4.5 million, amortized over five years on a straight line basis, also carries a fixed interest rate of 6.5% over the five year term. The New Operating Facility carries an interest rate of prime plus 2.25%.
�This re-financing is a major positive step forward for the Company. It restores liquidity to the balance sheet just as the economy is emerging from the recession�, said Guy Nelson, Chief Executive Officer of Empire. �The Company has now re-established normal day-to-day financing arrangements and is better able to take advantage of increased activity in industrial, commercial and infrastructure construction in western Canada. We look forward to further developing the business relationship with our new financing partner, Canadian Western Bank.�