Langley-based Hardwoods Distribution Income Fund (TSX:HWD.UN) has entered into a new $15 million revolving credit facility used to meet its short-term financing needs.
Maurice Paquette, Hardwood's president and CEO said, "The new credit facility provides competitive lending rates to our business in the current credit environment, and has fewer and less restrictive financial covenants than our previous arrangement."
The new loan replaces its existing $12 million credit facility that was set to expire in November and permits borrowings up to 85% of the book value of certain eligible accounts receivable and up to the lesser of 85% of appraised value or 65% of the book value of eligible inventory.
Hardwoods paid the lender a one-time closing fee of $75,000 plus closing costs to enter into the new facility. The costs will be amortized over the three-year term of the facility maturing August 7, 2012.
Hardwood's unit price range during the past week: between $1.33 and $1.80; 52-week high: $3.50; 52-week low: $0.50.