VANCOUVER, British Columbia, May  08, 2023  (GLOBE NEWSWIRE) -- Tree Island Steel Ltd. (the “Company” or “Tree Island”) (TSX:TSL) announced today, that it has successfully renewed its senior banking facility with current lender Wells Fargo Capital Finance Corporation Canada (“Wells Fargo”). With the proceeds of the sale of the Etiwanda facility applied to the banking facility and the expectation for minimal usage due to the Company’s positive cash flow, the overall limit of the three year Senior Secured Revolving Facility (the “Facility”) decreases to $35 million from the current $80 million.

Under the terms of the Facility, interest is charged at variable rates based on the applicable Canadian and US benchmark interbank rate. For the revolving facility, up to $25 million may be borrowed in Canadian and/or US dollars with the amount advanced under the revolving facility limited to a defined percentage of inventories and accounts receivable, less certain reserves. In addition, up to $10 million may be borrowed as term debt, in Canadian and/or US dollars.

The Facility is secured by a first charge over Company’s assets supported by guarantees and pledges and requires that certain covenants be met by Tree Island.

“We are pleased to be continuing our long relationship with Wells Fargo; who have continuously supported and adapted to our evolving financial needs since 2010,” commented Amar Doman, Executive Chair of Tree Island Steel.

About Tree Island Steel

Tree Island Steel, headquartered in Richmond, British Columbia, since 1964, through its operating facilities in Canada and the United States, produces wire products for a diverse range of industrial, residential construction, commercial construction and agricultural applications. Its products include galvanized wire, bright wire; a broad array of fasteners, including packaged, collated and bulk nails; stucco reinforcing products; concrete reinforcing mesh; fencing and other fabricated wire products. The Company markets these products under the Tree Island®, Halsteel®, K-Lath®, TI Wire®, Tough Strand® and ToughPanel™ brand names.

For more information, please contact:

Ali Mahdavi
Investor Relations & Capital Markets
(416) 962-3300
email: [email protected]
Website: www.treeisland.com