Vertex Resource Group Ltd. Announces $70 Million Senior Secured Credit Facilities

Vertex Resource Group Ltd. Announces $70 Million Senior Secured Credit Facilities

Canada NewsWire

Vertex Debt Refinancing Enables Future Growth Initiatives

SHERWOOD PARK, AB, May 11, 2018 /CNW/ - (TSX.V:VTX) - Vertex Resource Group Ltd. ("Vertex" or the "Company") is pleased to announce that it has entered into an agreement with a syndicated group of senior lenders (the "Lenders") led by HSBC Bank Canada, under which the Lenders have agreed to provide Vertex with $70 million senior secured credit facilities (the "Senior Secured Facilities") for a three-year term. In addition to the Senior Secured Facilities this agreement provides for an additional $20 million accordion facility (together with the Senior Secured Facilities, the "Facilities") available to support future growth initiatives of the Company. All loans are being provided in Canadian dollars and come with customary covenant terms.

Vertex Resource Group Ltd. Announces $70 Million Senior Secured Credit Facilities (CNW Group/Vertex Resource Group Ltd.)

The Facilities will replace existing credit facilities and support the Company's ability to capitalize on both organic and acquisition opportunities as they arise while maintaining a prudent approach to leverage. It is anticipated, starting in 2019, that the refinancing will reduce the Company's overall interest rate and expense, resulting in annual cost savings of approximately $2 million.

Established in 1976, Vertex has grown to become a leading provider of environmental and environmentally focused industrial services. Headquartered in Sherwood Park, Alberta, Vertex employs a staff of approximately 750 employees that service a wide array of customers in industries such as oil and gas, utilities, telecommunication, forestry, agriculture and government. Vertex's management team is comprised of industry veterans with a successful track record for industry consolidation and opportunistic acquisitions. Vertex principally operates in western Canada and maintains a presence in select locations in the United States.

Any "financial outlook" or "future oriented financial information" in this press release, as defined by applicable securities laws, has been approved by management of Vertex. Such financial outlook or future oriented financial information is provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other circumstances.

Certain statements contained in this news release, such as the Company's beliefs and expectations related to the Facilities and anticipated cost savings associated with the refinancing, constitute "forward-looking information" as such term is used in applicable Canadian securities laws. Forward-looking information is based on plans, expectations and estimates of management at the date the information is provided and is subject to certain factors and assumptions, including, that the Company will be able to comply with its obligations under the Facilities. Forward-looking information is subject to a variety of risks and uncertainties and other factors that could cause plans, estimates and actual results to vary materially from those projected in such forward-looking information. Factors that could cause the forward-looking information in this news release to change or to be inaccurate include, but are not limited to, compliance with covenants and/or repayment obligations under the Facilities, the risk that any of the assumptions referred to prove not to be valid or reliable, that the Company's financial condition and development plans change, as well as the other risks and uncertainties applicable to the provision of environmental and industrial services and to the Company as set forth in the Company's Annual Information Form filed under the Company's SEDAR profile at The Company undertakes no obligation to update these forward-looking statements, other than as required by applicable law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

SOURCE Vertex Resource Group Ltd.

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