Macro Industries Inc. Announces Completion of New $145 Million Senior Secured Credit Facility

May 23, 2019 7:57 PM EDT | Source: Macro Enterprises Inc.

Fort St. John, British Columbia--(Newsfile Corp. - May 23, 2019) - Macro Enterprises Inc. (TSXV: MCR) (the "Company" or "Macro") is pleased to announce that its wholly-owned subsidiary, Macro Industries Inc. (the "Borrower") has finalized its new $145 million senior secured credit facilities first announced on April 11, 2019. HSBC Bank Canada ("HSBC") is the lead lender, and acted as agent to the lending syndicate that includes National Bank of Canada and Bank of Montreal. The credit facilities have a three-year term, and comprise a $65.0 million revolving credit facility, with availability subject to a margining, and an $80.0 million letter of credit facility, the latter backed by Export Development Canada performance security guarantee insurance. The new revolving facility will provide Macro with enhanced flexibility and access to the funding essential to support its expanding portfolio of large-scale project opportunities. The letter of credit facility will provide for the issuance of standby letters of credit to backstop the Company's performance guarantees that are a customary feature of its construction business.

The borrowing rate pricing grid provides for a range of spreads over HSBC prime rate (or, if applicable, HSBC's US base rate), set with reference to the Company's senior debt-to-EBITDA ratio, making the initial borrowing rate spread 50 bps. The rate spread is subject to quarterly review, and possible increase up to 125 bps. The standby letter of credit facility rates, set with reference to the same ratio, range from 125 bps to 200 bps.

The Company has the right, subject to customary conditions, to increase the amount of the revolving facility by up to $20.0 million and to increase the letter of credit facility by up to $10 million, bringing the total credit facilities to a maximum of $175.0 million, by securing increased commitments from one or more of the initial lenders or by securing one or more new lenders.

The facilities are guaranteed by the Company, including its subsidiaries (excluding its special purpose subsidiaries), collaterally secured by a first ranking security interest over all present and future acquired assets, property and undertakings of such parties.

The Company

Macro's core business is providing pipeline and facilities construction and maintenance services to major companies in the oil and gas industry in northeastern B.C. and northwestern Alberta. The Company's corporate office is in Fort St. John, British Columbia. Its shares are listed on the TSX Venture Exchange under the symbol MCR. Information on the Company's principal operations can be found on the Company's website at www.macroindustries.ca

Forward-Looking Statement Cautions:

This press release contains certain "forward-looking statements" within the meaning of Canadian securities legislation, including statements regarding the intended use, and possibility of increase in the amount, of new credit facilities. Such statements may include forward-looking information that involves various risks and uncertainties. These risks and uncertainties include the risk that by reason of oil prices, global economic conditions, government regulation of energy and resource companies, weather patterns, terrorist activity, the price and availability of alternative fuels, the availability of pipeline capacity, potential instability or armed conflict in oil-producing regions, material changes in the Company's affairs, or other circumstances that could increase the Company's cost of borrowing under or continuing availability of the disclosed credit facilities, and the risk that the Company will not be the successful bidder or is otherwise not able to realize on potential growth opportunities that it has identified. These statements are based on the credit agreements not in place and the current expectations of the Company's management, and are expressly qualified in their entirety by this cautionary notice. Although the Company believes that such statements are reasonable, the associated risks and uncertainties may cause actual results to differ from current expectations, and there can be no assurance that such forward-looking statements will prove to be accurate. Except to the extent required by applicable securities laws and the policies of the TSX Venture Exchange, the Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change. The reader is urged to refer to the Company's public disclosure record available through the Canadian Securities Administrators' System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com for a more complete discussion of the Company's business, including the associated risk factors and their potential effects.

For further information please contact:

Frank Miles
President and C.E.O.
Phone: (250) 785-0033

Jeff Redmond, CPA, CA
C.F.O.
(250) 785-0033

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/45018

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