Avcorp secures USD 3.5m in additional working capital funding

Avcorp Industries Inc. (TSX :AVP ) has announced it has closing a non-revolving term loan agreement in the principal amount of USD 3.5 million with majority shareholder Panta Canada B.V., the company said.

Panta Canada B.V. owns approximately 68.6% of the issued and outstanding common shares. Panta Canada B.V. is wholly owned by Panta Holdings B.V. Both companies are incorporated in The Netherlands.

The loan is subordinated to existing security agreements and bears interest at the aggregate rate of interest, expressed as an annual rate, of the US Base Rate of Royal Bank of Canada (“RBUSBR”) plus a margin of 5.375% per annum.

The Avcorp Group designs and builds major airframe structures for some of the world´s leading aircraft companies, including BAE Systems, Boeing, Bombardier, Lockheed Martin and Subaru Corporation.