Avcorp announces $12m debt facility

Avcorp Industries announced that it has entered into a loan agreement with Royal Bank of Canada (“RBC”) for a $12m principal amount secured debt facility (the “Debt Facility”). The Debt Facility has a three-year term and bears interest at a rate equal to RBC’s prime rate plus 0.5%. The Debt Facility is secured by a charge and specific registration over all of the assets of the Company. The Debt Facility will be used to repay amounts owing under the Company’s facility with HSBC Bank Canada, the Company’s secured term loan, and for general working capital purposes. This debt facility will significantly reduce the Company’s cost of capital.