March 17, 2017
VANCOUVER: Avcorp Industries Inc. (TSX: AVP) (the “Company” or “Avcorp”) is pleased to announce that it has entered into an agreement to extend its existing credit facilities with its current lender to US$58 million, up from CAD$21 million. The credit facility extension supports the Company’s recent efforts to re-structure operations, win long-term production contracts and strengthen its relationships with key customers.
The current credit facilities will be extended in increments through 2017 and 2018, with maturity on June 30, 2020, subject to definitive loan documentation and required consents. The credit facility expansion will provide working capital for the Company’s operations in Delta British Columbia, Burlington Ontario and Gardena California including the funding of operating expenses in connection with all customer production lines and supplier payables. The extension of the credit facilities will also provide required capital to ensure that Avcorp continues to play a key role in the supply chain of its valued customers.
It is anticipated that the definitive loan documentation will be completed before the end of the second quarter 2017.
The Avcorp Group designs and builds major airframe structures for some of the world’s leading aircraft companies, including BAE Systems, Boeing, Bombardier, Fuji Heavy Industries and Lockheed Martin. The Avcorp Group has more than 50 years of experience, over 800 skilled employees and 636,000 square feet of facilities. Avcorp Structures & Integration located in Delta British Columbia, Canada is dedicated to metallic and composite aerostructures assembly and integration; Avcorp Engineered Composites located in Burlington Ontario, Canada is dedicated to design and manufacture of composite aerostructures, and Avcorp Composite Fabrication located in Gardena California, USA has advanced composite aerostructures fabrication capabilities for composite aerostructures. The Avcorp Group offers integrated composite and metallic aircraft structures to aircraft manufacturers, a distinct advantage in the pursuit of contracts for new aircraft designs, which require lower-cost, light-weight, strong, reliable structures. Comtek Advanced Structures Ltd., at our Burlington, Ontario, Canada location also provides aircraft operators with aircraft structural component repair services for commercial aircraft.
Avcorp Composite Fabrication Inc. is wholly owned by Avcorp US Holdings Inc. Both companies are incorporated in The State of Delaware, USA, and are wholly owned subsidiaries of Avcorp Industries Inc.
Comtek Advanced Structures Ltd., incorporated in the Province of Ontario, Canada, is a wholly owned subsidiary of Avcorp Industries Inc.
Avcorp Industries Inc. is a federally incorporated reporting company in Canada and traded on the Toronto Stock Exchange (TSX:AVP).
Sandi DiPrimo, Investor Relations Contact | 604-587-4938