Avcorp Industries Inc. (TSX: AVP) has entered into an agreement to extend its existing credit facilities with its current lender to USD 58m, up from CAD 21m, the company said.
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.
The Avcorp Group designs and builds major airframe structures for aircraft companies, including BAE Systems, Boeing, Bombardier, Fuji Heavy Industries, and Lockheed Martin. The company has 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, has advanced composite aerostructures fabrication capabilities for composite aerostructures.
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.