Churchill Enters into New $60 Million Credit Facility
Tuesday, Jan 6 2009
EDMONTON, Jan. 6 /CNW/ - The Churchill Corporation (the "Corporation" or
"Churchill") today announced that it has entered into a new credit facility
with its lender, HSBC Bank Canada. This new facility includes a $60 million
operating line that replaces the current $21 million line and $5.3 million
term debt facility.
Daryl Sands, Churchill's Chief Financial Officer, commented, "This new
credit facility, combined with our cash on hand of $78 million, provides us
with significant liquidity and financial flexibility to pursue our growth
strategy. In addition, we expect to continue to generate considerable free
cash flow to support our stock repurchase program, debt repayment and
The term of the facility is three years and matures in October 2011.
Borrowing under the credit facility will bear interest at a floating rate
ranging from prime to prime plus 0.50%. HSBC Bank will also continue to
provide the Corporation with a $3 million evergreen lease credit facility for
the purpose of financing future capital equipment.
About The Churchill Corporation:
The Churchill Corporation provides building construction, industrial
construction and maintenance services throughout Western Canada. Churchill
common shares are listed on the Toronto Stock Exchange under the symbol "CUQ".
FORWARD LOOKING STATEMENTS
Certain statements in this Press Release may constitute "forward-looking
statements". Forward-looking statements include, without limitation,
statements regarding the future financial position, business strategy,
budgets, litigation, projected costs, capital expenditures, financial results,
taxes, plans and objectives of the Corporation. Many of these statements can
be identified by looking for words such as "believes," "expects," "may,"
"will," "intends," "anticipates," "estimates," "continues," or the negative
thereof, or other variations thereon. Although management of Churchill
believes its expectations regarding future performance of the Corporation are
based on reasonable assumptions and currently available competitive, financial
and economic data, market conditions and operating plans, it can give no
assurance its expectations will be achieved. The Corporation cautions that, by
their nature, forward-looking statements, involve risks, and uncertainties and
that its actual actions, and/or results could differ materially from those
expressed or implied in such forward-looking statements, and that the
aforementioned risks, uncertainties and actions could affect the extent to
which a particular projection materializes. The Corporation assumes no
obligation to update the forward-looking statements should circumstances or
the Corporation's management's estimates or opinions change.
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