TORONTO, March 23, 2012 /PRNewswire/ - General Donlee
Canada Inc. (TSX: GDI) ("General Donlee" or the "Company") is
pleased to announce that its wholly owned subsidiary General
Donlee Limited has entered into a
new credit agreement with HSBC Bank Canada.
The agreement provides for credit facilities totaling
$33 million, comprised of a
$7.5 million revolving operating
facility, a $22.5 million
non-revolving term facility which can be drawn upon at the
Company's option prior to December 31,
2012, and a $3 million
optional capital lease facility. Borrowing costs are adjusted
quarterly and are based on a pricing grid which is calculated using
a ratio of net funded debt to EBITDA.
The credit agreement also includes a foreign exchange line under
which the Company will have the option to enter into foreign
currency hedging contracts with an aggregate face value of up to
$25 million, and an interest rate
SWAP facility under which the Company will have the option to enter
into interest rate SWAP contracts with an aggregate face value of
up to $15 million to hedge against
interest rate exposure risk.
The new credit facilities will replace the existing credit
facilities.
Garen Mikirditsian, Chief Executive Officer and Interim Chief
Financial Officer of General Donlee said "The new credit agreement
offers the Company additional financial flexibility, reduces our
cost of borrowing, provides an expanded ability to hedge our
foreign currency exposure and supports our plans to make
investments in line with the Company's growth strategy." Mr.
Mikirditsian added: "We are very pleased to work with HSBC Bank
Canada and look forward to a long-term partnership in growing
General Donlee."
About General Donlee Canada Inc.
General Donlee Canada Inc. is a leading diversified manufacturer
of precision-machined products for the military, commercial and
general aerospace industries, and a specialist in the manufacture
of precision-machined products for the industrial products and
power generation industries. General Donlee's operating strategy
focuses on targeting niche markets for products that are aligned
with its sophisticated manufacturing capabilities and skilled
workforce.
SOURCE General Donlee Canada Inc.