TORONTO, June 25, 2020 (GLOBE NEWSWIRE) -- Shawcor Ltd. (TSX: SCL) announced today that the co-lead arrangers of its banking syndicate (The Toronto-Dominion Bank and National Bank of Canada) have agreed to a term sheet to provide financial covenant relief under Shawcor’s credit facility until the end of the first fiscal quarter of 2022. The term sheet has been provided to the rest of the banking syndicate for their approval. It is expected that the amendment to the credit facility will be in place before the end of July 2020. In the interim, all lenders in Shawcor’s banking syndicate have waived compliance with the leverage and interest coverage ratios under the credit facility for Shawcor’s second fiscal quarter ending June 30, 2020 should Shawcor be in default thereof.
Shawcor Ltd. is a global company serving various sectors of the Infrastructure, Energy and Transportation markets through three reporting segments: Pipeline and Pipe Services, Composite Systems and Automotive and Industrial. The Company operates through a global network of fixed and mobile manufacturing and service facilities and is valued for its integrity, technology and proven capability to execute the most complex projects in its industry.
This news release contains forward-looking information within the meaning of applicable securities laws. Words such as "may", "will", "should", "anticipate", "plan", "expect", "believe", "predict", "estimate" or similar terminology are used to identify forward-looking information. Specifically, this news release contains forward-looking information in respect of the amendment to the Company’s credit facility and the timing to complete same. This forward-looking information is based on assumptions, estimates and analysis made in the light of the Company's experience and its perception of trends, current conditions and expected developments, including the satisfaction of all conditions to implementing the amendment, as well as other factors that are believed by the Company to be reasonable and relevant in the circumstances. Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to be materially different from those predicted, expressed or implied by the forward-looking information and readers are cautioned not to unduly rely on forward looking information. The forward-looking information is provided as of the date of this news release and the Company does not assume any obligation to update or revise the forward-looking information to reflect new events or circumstances, except as required by law.
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Source: Shawcor Ltd.