Clearwater Seafoods Ltd. Partnership on Monday announced it reached an agreement on a three-year CAD 57 million (USD 52.4 million, EUR 37 million) term debt facility with a syndicate of lenders, including GE Capital.
The term debt facility will be secured by mortgages and charges on all Clearwater property, vessels and interest in fishing licenses.
It will be structured in two tranches: GE Capital, the Business Development Bank of Canada (BDC) and Export Development Canada (EDC) will participate in Tranche A in the amount of CAD 15 million (USD 13.8 million, EUR 9.7 million), 12.5 million (USD 11.5 million, EUR 8.1 million) and 12.5 million (USD 11.5 million, EUR 8.12 million) respectively, while the province of Nova Scotia and BDC will participate in Tranche B in the amount of CAD 15 million (USD 13.8 million, EUR 9.7 million) and CAD 2 million (USD 1.8 million, EUR 1.3 million), respectively.
Currently, Clearwater has outstanding debt facilities of approximately CAD 95 million (USD 87.3 million, EUR 61.7 million) but is “confident” the debt will be settled at maturity on 8 June.
“The completion of this agreement in what has been one of the toughest credit markets in recent history speaks to the ongoing strength of Clearwater’s business model, said Colin MacDonald, Clearwater’s chairman and CEO.
“We wish to express our appreciation to GE Capital in Canada for their commitment to the organization and in particular would like to express our appreciation for the leadership shown by the province of Nova Scotia, BDC and EDC to ensure successful Nova Scotia-based companies continue to have access to capital and support to be competitive and sustainable. We appreciate this support.”
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