VANCOUVER, Jan. 8 /PRNewswire-FirstCall/ -- WesternOne Equity Income Fund ("WesternOne Equity") (TSX: WEQ.UN and WEQ.DB) announced today it has entered into an amended credit facility with its lender, HSBC Bank Canada (the "Bank"), effective December 31, 2008.
WesternOne Equity has reduced overall debt by $8.4 million through the paydown of part of the acquisition loan pertaining to the acquisition of the assets of Sure-Fire Propane Ltd. and Davis Heater Services Ltd. in October 2008. The paydown was funded with proceeds from the recently completed equity offering of $4.6 million and cash available on hand.
The amended credit facility consists of an acquisition loan and a capital loan with an outstanding balance of $26.0 million and $10.0 million respectively. Repayment of $4.6 million of the credit facility will mature on December 31, 2010. Repayment of the remaining balance of the credit facility will mature on the fifth anniversary of the date of the initial advance of each loan. The maturity of these loans ranges from August, 2011 to November, 2013.
Borrowing under the credit facility will bear interest at the Bank's prime rate plus a range of 1.2% to 1.5%, or the Bank's banker acceptance rate plus a range of 2.7% to 3.0%. HSBC will also continue to provide WesternOne with an operating loan facility of $4.75 million at the Bank's prime rate plus 1.0%.
Darren Latoski, WesternOne Equity's Chief Executive Officer, commented, "The amended credit facility reflects the continuing confidence that our lender has in WesternOne Equity. The paydown of $8.4 million of the acquisition loan results in a stronger balance sheet, as well as greater flexibility to execute our business plan and provide for continued growth."
About WesternOne Equity -----------------------
WesternOne Equity seeks to acquire equipment and infrastructure related businesses located primarily in the Western Canadian provinces of British Columbia, Alberta and Saskatchewan, in order to generate stable and growing distributions to its unitholders as well as to achieve overall capital appreciation.
Additional information about WesternOne Equity is available at http://www.weq.ca/ or http://www.sedar.com/
THE TSX EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR
THE ADEQUACY OR THE ACCURACY OF THIS RELEASE.
