October 09, 2024 6:00 PM EDT | Source: Bri-Chem Corp.
Edmonton, Alberta–(Newsfile Corp. – October 9, 2024) – Bri-Chem Corp. (TSX: BRY) (OTCQB: BRYFF) (“Bri-Chem” or “Company”), a prominent oilfield chemical distribution and blending company in North America, is pleased to announce the renewal of its senior credit facilities (“ABL Facility”) with the Canadian Imperial Bank of Commerce (“CIBC”). The ABL facility now has a borrowing base of $37.5 million and is committed until April 30, 2026.
The ABL Facility carries interest at the Canadian prime rate plus 2% or CORRA and SOFR rate plus 2%. It also includes a standby fee of 0.25% on unused amounts, is secured by a general security agreement covering inventory, accounts receivable balances, and postponements of claims from related parties. Furthermore, amendments have been made to reduce professional fees, and an additional default provision related to the renegotiation of current subordinated debt loan has been added. The financial covenants remain consistent with the previous agreement.
Don Caron, Chairman & Chief Executive Officer, expressed his excitement about the extension of the ABL Facility with CIBC, stating, “We are very excited that we have the opportunity to extend our ABL Facility with CIBC until April 30, 2026. The support shown by CIBC over the past decade has been unwavering, and we appreciate having them as our main financial partner going forward.”
About Bri-Chem
Bri-Chem is the industry leader in North America for wholesale distribution and blending of oilfield drilling, completion, stimulation, and production chemical fluids. They offer a full range of drilling fluid products from 25 strategically located warehouses throughout Canada and the United States. For additional information about Bri-Chem, please visit their website at www.brichem.com.
Forward-Looking Statements
Certain statements in this news release constitute forward-looking information or statements under Canadian securities legislation, relating to future events or performance. These statements are based on current beliefs and assumptions, and actual future results may differ.
While the Company believes that the expectations on which such forward-looking statements are based are reasonable, caution should be exercised as there are various risks and uncertainties that could impact actual results. The Company does not undertake to publicly update or revise any forward-looking statements. The forward-looking statements in this document are qualified by this cautionary statement.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/226207
