Hardwoods Distribution Income Fund renews C$24.5M credit facility available to U.S. subsidiary Hardwoods Speciality Products
LANGLEY, British Columbia
May 26, 2011
– Hardwoods Distribution Income Fund (the "Fund") (TSX: HWD.UN) today announced the renewal of the $24.5 million (US$25 million) revolving credit facility available to the Fund's U.S. operating subsidiary, Hardwoods Speciality Products USLP ("Hardwoods USLP"). The Fund owns an 80% indirect interest in Hardwoods USLP.
The renewed revolving credit facility is for a four year term, expiring May 26, 2015. Highlights of the facility renewal include:
"We continue to enjoy strong service from our U.S. bankers, who are familiar with and support our business model," commented Lance Blanco, Hardwoods' President and CEO. "We are pleased to have renewed our credit arrangements on more favourable terms with them for another four years. Hardwoods will benefit from improved borrowing rates, a more flexible covenant, and an enhanced calculation of our borrowing base under this U.S. credit facility. Combined with our Canadian credit facility, we have significant unused borrowing capacity available for Hardwoods to pursue its market expansion strategy," said Blanco.
About the Fund
The Fund is an unincorporated, open-ended, limited purpose trust established to hold, indirectly, securities which represent an 80% ownership interest in Hardwoods.
Hardwoods is one of North America's largest distributors of high-grade hardwood lumber and sheet goods to the cabinet, moulding, millwork, furniture and specialty wood products industries. The company currently operates a network of 26 distribution centers in the U.S. and Canada.