Mr. Tony Pagnucco reports

BRI-CHEM CLOSES EXTENSION ON ITS SENIOR BANKING FACILITY

Bri-Chem Corp. has entered into an agreement with the Canadian Imperial Bank of Commerce to renew its senior credit facilities with a borrowing base of $37.5-million. The ABL (asset-backed loan) facility is now committed until April 30, 2026.

The ABL facility bears interest either at the Canadian prime rate plus 2 per cent or CORRA (Canadian overnight repo rate average) and SOFR (secured overnight financing rate) plus 2 per cent, has a standby fee of 0.25 per cent on unused amounts of the ABL facility, and is secured by a general security agreement covering all present and after-acquired inventory and accounts receivable balances, and postponements of claims from related parties. In addition to the extension of favourable terms, amendments have been provided that will reduce professional fees associated with the administration of the ABL facility, and an additional default provision associated to the successful renegotiation or refinancing of the company's current subordinated debt loan six months prior to its expiration has been added. Financial covenants are consistent with the previous agreement.

Don Caron, chairman and chief executive officer, comments: "We are very excited that we have the opportunity to extend our ABL facility with CIBC until April 30, 2026. The support shown by CIBC over the past decade has been unwavering and we appreciate having them as our main financial partner going forward."

About Bri-Chem Corp.

Bri-Chem has established itself, through a combination of strategic acquisitions and organic growth, as the North American industry leader for wholesale distribution and blending of oil field drilling, completion, stimulation and production chemical fluids. The company sells, blends, packages and distributes a full range of drilling fluid products from 25 strategically located warehouses throughout Canada and the United States.

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