Bri-Chem closes C$80 million three-year ABL facility via CIBC, HSBC

By Susanna Moon

Chicago, Aug. 15 - Bri-Chem Corp. said it closed an C$80 million asset-based lending credit facility with CIBC Asset-Based Lending Inc. and HSBC Bank Canada.

Interest on the loans will be Banker's Acceptance rate plus 175 basis points or Libor plus 175 bps.

The initial term of the facility is for three years, and the agreement replaces the existing C$50 million revolving line of credit.

The borrowing base will be calculated as a percentage of accounts receivable and inventory.

The loan terms allow for an increase in available credit of about C$30 million at the company's peak seasonal requirements, according to the company's press release.

In conjunction with the closing, Bri-Chem will pay long-term debts of about C$2.6 million.

"We appreciate the depth of financing the ABL provide us which now makes it possible for us to move extremely quickly in executing our immediate and long-term strategic growth plans," Don Caron, chief executive officer of Bri-Chem, said in the release.

Bri-Chem is a wholesale distributor of drilling fluids, steel pipe and piping products to the oil and gas industry and is based in Edmonton, Alta.

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