Petrowest Corporation has entered into a new $30 million revolving operating credit facility with Bank of Montreal (the "New Facility"). The New Facility matures in 36 months.

The interest rate for the New Facility is, at the election of Petrowest, the prime rate or the discount rate for bankers acceptances. The New Facility is secured by a general security agreement providing a first ranking security interest over all of the working capital/current assets of Petrowest Corporation and of each subsidiary and limited partnership in the Petrowest group and a second ranking security interest over all other assets.

The New Facility allows Petrowest to draw up to $30 million, based upon a borrowing base determined by the value of accounts receivable. A total of $18.5 million was funded at closing, and $11.5 million remains available to draw by Petrowest subject to borrowing base availability.

Tags: Petrowest Corporation