Enterprise Group, Inc. Announces Increase to Existing Finance Facility
ST. ALBERT, ALBERTA--(Marketwired - May 2, 2013) -
Leonard D. Jaroszuk, President and CEO of Enterprise Group, Inc.
(TSX:E) ("Enterprise" or "Corporation") is pleased to announce that the
Corporation has accepted a term sheet presented by PNC Bank Canada
Branch (PNC) to increase its current senior secured finance facility
from $12.5 million to $20 million at the existing interest rate of prime
plus 2%.
This increase coupled with the $6.0 million debenture financing announced March 26, 2013, will assist in facilitating the close of the acquisition of the specialized underground infrastructure company announced on February 28, 2013. As illustrated in that announcement, preliminary unaudited sales revenue for the target acquisition was approximately $14.9 million and EBITDA of $5.8 million, for the year ending 2012.
Further to the existing terms, PNC has also agreed to increase the Corporation's 2013 capital expenditure program from $3.0 million to $11.0 million. This capital expenditure increase, together with the $6.0 million equity private placement announced April 26, 2013, will facilitate the aggressive growth plan to meet the demand for the services of Enterprise's business units.
About Enterprise Group, Inc.
Enterprise Group, Inc. is a consolidator of
construction services companies operating in the energy, utility and
transportation infrastructure industries. The Company's focus is
primarily underground construction & maintenance and specialized
equipment rental. The Company's strategy is to acquire complementary
service companies in Western Canada, consolidating capital, management
and human resources to support continued growth. Enterprise became a
Western Canadian leader in flameless heat technology in September 2012
with its acquisition of Artic Therm International Ltd. and is poised to
become a technological leader in underground infrastructure construction
upon closing of its pending infrastructure construction acquisition.
Forward Looking Statements
Certain statements contained in this release constitute forward-looking information. These statements relate to future events or the Company's future performance. The use of any of the words "could", "expect", "believe", "will", "projected", "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on current beliefs or assumptions as to the outcome and timing of future events. Actual future results may differ materially. In particular, statements with respect to anticipated activity levels and profitability of the Company's utility and infrastructure division and anticipated increases in revenue and margins attributed to services provided by the Company to the energy sector contain forward looking information. The Company's Annual Information Form and other documents filed with securities regulatory authorities (accessible through the SEDAR website at www.sedar.com) describe the risks, material assumptions and other factors that could influence actual results and which are incorporated herein by reference. The forward-looking statements and information contained in this document are made as of the date hereof for the purpose of providing the readers with the Company's expectations for the next year. The forward-looking statements and information may not be appropriate for other purposes. The Company disclaims any intention or obligation to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as may be expressly required by applicable securities laws.
This increase coupled with the $6.0 million debenture financing announced March 26, 2013, will assist in facilitating the close of the acquisition of the specialized underground infrastructure company announced on February 28, 2013. As illustrated in that announcement, preliminary unaudited sales revenue for the target acquisition was approximately $14.9 million and EBITDA of $5.8 million, for the year ending 2012.
Further to the existing terms, PNC has also agreed to increase the Corporation's 2013 capital expenditure program from $3.0 million to $11.0 million. This capital expenditure increase, together with the $6.0 million equity private placement announced April 26, 2013, will facilitate the aggressive growth plan to meet the demand for the services of Enterprise's business units.
About Enterprise Group, Inc.
Enterprise Group, Inc. is a consolidator of
construction services companies operating in the energy, utility and
transportation infrastructure industries. The Company's focus is
primarily underground construction & maintenance and specialized
equipment rental. The Company's strategy is to acquire complementary
service companies in Western Canada, consolidating capital, management
and human resources to support continued growth. Enterprise became a
Western Canadian leader in flameless heat technology in September 2012
with its acquisition of Artic Therm International Ltd. and is poised to
become a technological leader in underground infrastructure construction
upon closing of its pending infrastructure construction acquisition. Forward Looking Statements
Certain statements contained in this release constitute forward-looking information. These statements relate to future events or the Company's future performance. The use of any of the words "could", "expect", "believe", "will", "projected", "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on current beliefs or assumptions as to the outcome and timing of future events. Actual future results may differ materially. In particular, statements with respect to anticipated activity levels and profitability of the Company's utility and infrastructure division and anticipated increases in revenue and margins attributed to services provided by the Company to the energy sector contain forward looking information. The Company's Annual Information Form and other documents filed with securities regulatory authorities (accessible through the SEDAR website at www.sedar.com) describe the risks, material assumptions and other factors that could influence actual results and which are incorporated herein by reference. The forward-looking statements and information contained in this document are made as of the date hereof for the purpose of providing the readers with the Company's expectations for the next year. The forward-looking statements and information may not be appropriate for other purposes. The Company disclaims any intention or obligation to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as may be expressly required by applicable securities laws.
Contact Information:
Enterprise Group, Inc.
Leonard D. Jaroszuk
President & CEO
780-418-4400 or TF: 888-303-3361
Enterprise Group, Inc.
Desmond O'Kell
Vice President, Corp. Development
780-418-4400 or TF: 888-303-3361
contact@EnterpriseOil.ca
www.EnterpriseOil.ca
Enterprise Group, Inc.
Leonard D. Jaroszuk
President & CEO
780-418-4400 or TF: 888-303-3361
Enterprise Group, Inc.
Desmond O'Kell
Vice President, Corp. Development
780-418-4400 or TF: 888-303-3361
contact@EnterpriseOil.ca
www.EnterpriseOil.ca
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