WINNIPEG, Manitoba, Oct. 07, 2020 (GLOBE NEWSWIRE) — Empire Industries Ltd. (TSX-V: EIL, OTC:ERILF) (“Empire”, “EIL” or the “Company”) with reference to its prior news releases dated April 29, 2019 and July 15, 2020 is pleased to announce that it has amended its USD $28.7 million senior Credit Agreement effective as of today. The material amendments to the Credit Agreement include: (i) extending the repayment dates for each of the facilities to align with the Company’s forecasted cash availability; (ii) reducing the annual interest from a variable prime plus 9.5% to a fixed rate of 10%; (iii) accruing and deferring 3% of the interest until the maturity of each facility and paying the remaining 7% on a monthly basis; and (iv) removing certain financial covenants altogether and revising the remaining financial covenants to allow the Company to remain in compliance to the end of the term of the loan.
To date, USD $1.5M of the loan has been repaid and another USD$16.5 million (including additional interest) is scheduled to be repaid throughout 2021 by way of payments directly to the lender from accounts receivables that have been assigned by the Company to the lender, which will leave an operating loan balance of USD $11.1 million outstanding as at December 31, 2021. The expected payments to be made are in the following amounts (USD): $1.5 million, $0.4 million, $4.3 million, $1.5 million, $0.2 million, $3.5 million, $0.7 million, $4.3 million and $0.1 million. The repayment of the operating loan has been extended to June 30, 2022.In addition, the Company also amended the terms of its USD $4.0 million term loan with another lender to push out the repayment of the loan in four equal, quarterly payments starting July 16, 2022 and ending on April 16, 2023.“We are pleased to have satisfied our senior lender’s conditions and finalized a loan accommodation with our two lenders that better matches our future expected cashflow and gets us back in compliance with our loan covenants,” said Guy Nelson, Executive Chairman and Chief Executive Officer of Empire. “It is indeed a challenging time for the entertainment industry, but we are confident that the steps we have already taken combined with our revised strategy will stand us in good stead as the market emerges from this pandemic.”About Empire Industries Ltd.Empire focuses on designing, supplying, and installing iconic media-based attractions and ride systems for the global theme park industry. Empire also uses these same turn-key integration services for special projects such as large optical telescopes and enclosures. Empire also has commenced an initiative to leverage its world class flying theater and attraction development capability on a co-venture ownership basis. Empire was selected as a 2020 TSX Venture 50 company. The 2020 TSX Venture 50 is a ranking of top performers on the TSX Venture Exchange over the past year. The ranking is comprised of 10 companies from each of 5 industry sectors, with Empire being selected in the Diversified Industry category. Selection was based on three equally weighted criteria; share price, trading and market capitalization. Empire’s common shares are listed on the TSX Venture Exchange under the symbol EIL.For more information about the Company, visit empind.com or contact:Reader Advisory
This news release contains forward-looking statements, within the meaning of applicable securities legislation, concerning Empire’s business and affairs. In certain cases, forward-looking statements can be identified by the use of words such as ‘‘plans’’, ‘‘expects’’ or ‘‘does not expect’’, ‘‘budget’’, “booked”, ‘‘scheduled’’, “positions”, ‘‘estimates’’, “forecasts’’, ‘‘intends’’, ‘‘anticipates’’, “believes” or variations of such words and phrases or state that certain actions, events or results ‘‘may’’, “may be”, ‘‘could’’, “should”, ‘‘would’’, ‘‘might’’ or ‘‘will’’, ‘‘occur’’ or ‘‘be achieved’’. Such statements include statements with respect to: (i) USD$16.5 million (including additional interest) being repaid throughout 2021 in the amounts specified, (ii) that the market will emerge favourably from the current pandemic, and that the Company’s actions will be sufficient to position it favourably. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Although Empire believes these statements to be reasonable, no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. Actual results could differ materially from those anticipated in these forward-looking statements as a result of prevailing economic conditions, and other factors, many of which are beyond the control of Empire. The forward-looking statements contained in this news release represent Empire’s expectations as of the date hereof, and are subject to change after such date. Empire disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as may be required by applicable securities regulations.Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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