March 7 - ENTREC Corporation has closed a new USD240 million senior secured asset-based credit facility, the ABL Facility, with a syndicate of lenders led by Wells Fargo Capital Finance Corporation Canada.

The syndicate of lenders also includes The Bank of Nova Scotia, Canadian Western Bank, The Toronto-Dominion Bank, and National Bank of Canada.

The ABL Facility replaces ENTREC's previous senior debt facilities and will be used to fund future capital expenditures and business acquisitions, as well as for general corporate purposes.

The facility has a five year term and requires payment of interest only. Amount borrowed bear interest, at ENTREC's option, at bank prime or bankers' acceptance rates, plus a credit spread based on a sliding scale.

The amount available under the ABL Facility is calculated monthly based upon a specified percentage of eligible equipment and trade accounts receivable, less applicable reserves. ENTREC currently has excess borrowing capacity of approximately USD69 million available for use.