EACOM Timber Corporation Secures $50 Million Credit Facility From

2010-11-25 | News / Press Releases

VANCOUVER, B.C. MONTREAL, QUEBEC— EACOM Timber Corporation (TSX VENTURE: ETR;
“EACOM” or the “Company”) today reported that it has entered into a three-year, $50 million
revolving credit facility agreement with GE Capital in Canada. The facility will be used to fund
working capital and general corporate purposes.

Mr Rick Doman, President and CEO of EACOM Timber Corporation, said “we are very pleased to
enter into this agreement with GE Capital. GE Capital’s experience in structuring transactions
in the forestry sector was instrumental in identifying a flexible financial structure that would
not only answer our immediate needs, but would also support future growth opportunities as
we pursue our vision of becoming a global softwood lumber Company.”

“It is very satisfying to see our customers take full advantage of GE’s deep domain expertise,”
said Ellis Gaston, General Manager, GE Capital Corporate Finance Canada. “We look forward to
supporting EACOM’s continued growth.”

 

Facility Details

Under the terms of the facility, amounts drawn and to be repaid are determined by a borrowing
base calculation that fluctuates with eligible receivable and inventory balances (net of
reserves). Borrowings can be in $Cdn or $US. Interest rates on Canadian dollar borrowings
are based on either banker’s acceptances or the Canadian chartered bank prime rate, at
EACOM’s choice, plus an applicable margin. That portion of the $50 million commitment that is
not drawn will be subject to a stand by fee and upon closing, EACOM was required to pay a
closing fee. The facility is secured by a first priority, perfected security interest on all existing
and future assets of EACOM. EACOM is subject to customary covenants, including a fixed
charge coverage ratio if the amount available for borrowing falls below a certain threshold.

 

About EACOM

EACOM Timber Corporation is a TSX-V listed company. EACOM owns seven sawmills and
an equity interest in an eighth sawmill, all located in Eastern Canada and related
tenures. The mills are Timmins, Nairn Centre, Gogama and Ear Falls in Ontario and Vald’Or,
Ste-Marie and Matagami in Quebec. The equity interest is in the Elk Lake sawmill
located in Ontario. The sawmills in Ear Falls, Ontario, and Ste-Marie, Quebec, are
currently idled. EACOM also owns one idle mill in Big River Saskatchewan. EACOM also
owns a remanufacturing facility and a 50% interest in an “I” joist plant.
The TSX Venture Exchange has neither approved nor disapproved the contents of this press
release. All directorships are subject to TSX Venture Exchange approval.

 

Forward-Looking Statements

All statements in this news release that are not based on historical fact are “forward-looking statements.”
While management has based any forward-looking statements contained herein on its current
expectations, the information on which such expectations were based may change. These forward-looking
statements rely on a number of assumptions concerning future events and are subject to a number of
risks, uncertainties, and other factors, many of which are outside of our control that could cause actual
results to materially differ from such statements. Such risks, uncertainties, and other factors include, but
are not necessarily limited to, those set forth under the captions “Risk Factors” of the Filing Statement
dated January 8, 2010 and the current MD&A for EACOM Timber Corporation on file with the Canadian
Securities Commissions.

MEDIA RELATIONS

(514) 917-1040


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