North American Construction Group Ltd. Announces Credit Facility Extension
Rhea-AI Summary
North American Construction Group (NOA) has extended and amended its senior secured credit facility to October 3, 2027. The facility's capacity has been increased to $525 million from $475 million, with additional secured equipment financing of $400 million available from third-party providers (up from $350 million). The credit facility includes Canadian and Australian dollar tranches, features a revolver with no scheduled repayments, and is not governed by a borrowing base. Financial covenants, tested quarterly, remain largely consistent with the previous agreement, except for replacing the fixed charge ratio with an interest coverage ratio.
Positive
- Credit facility extended by one year to 2027
- Increased lending capacity by $50M to $525M
- Additional equipment financing limit increased by $50M to $400M
- No scheduled repayments required
- No borrowing base limitations
Negative
- None.
News Market Reaction – NOA
On the day this news was published, NOA gained 0.81%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
ACHESON, Alberta, Oct. 25, 2024 (GLOBE NEWSWIRE) -- North American Construction Group Ltd. (“NACG” or “the Company”) (TSX:NOA.TO/NYSE:NOA) today announced it has finalized an extension and amendment of its senior secured credit facility (the “Credit Facility”). The maturity date has been extended by one year to October 3, 2027. In addition to the extension, the capacity has been increased to provide greater flexibility in operating the Company’s Australian and Canadian businesses.
“We would like to take this opportunity to once again thank National Bank Financial and our syndicate partners for their ongoing support,” Jason Veenstra, Chief Financial Officer stated. “It is encouraging to have all existing members extend. This low-cost facility is the foundation of our debt financing and provides the liquidity and term needed for our business.”
The Credit Facility provides lending capacity of
About NACG
NACG is one of Canada and Australia’s largest providers of heavy construction and mining services. For over 70 years, NACG has provided services to mining, resource, and infrastructure construction markets.
Jason Veenstra, CPA, CA
Chief Financial Officer
P: 780.960.7171
E: ir@nacg.ca
The information provided in this release contains forward-looking statements. Forward-looking statements include statements preceded by, followed by or that include the words “expected”, “estimated” or similar expressions, including the anticipated revenues and backlog to be generated by the contract. The material factors or assumptions used to develop the above forward-looking statements and the risks and uncertainties to which such forward-looking statements are subject are highlighted in the Company’s MD&A for the year ended December 31, 2023 and quarter ending June 30, 2024. Actual results could differ materially from those contemplated by such forward-looking statements because of any number of factors and uncertainties, many of which are beyond NACG’s control. For more complete information about NACG, please read our disclosure documents filed with the SEC and the CSA. These free documents can be obtained by visiting EDGAR on the SEC website at www.sec.gov or on the CSA website at www.sedar.com.
FAQ
When does NOA's new credit facility extension expire?
What is the new lending capacity of NOA's credit facility?
How much additional equipment financing can NOA access from third parties?
What major change was made to NOA's financial covenants?
