Dec 06, 2011. /Lesprom Network/. Hardwoods Distribution Inc. announced the renewal of the $15 million revolving credit facility available to its wholly owned Canadian operating subsidiary, Hardwoods Speciality Products LP ("Hardwoods LP"). The term of the renewed revolving credit facility has been extended to August 7, 2016. Highlights of the facility renewal include: - Hardwoods LP may terminate the facility at any time without prepayment penalty. - The rate of interest charged for Prime-based borrowings was reduced to Prime plus 50 basis points (previously Prime plus 200 bps). - The rate of interest charged for Bankers Acceptance ("BA") based borrowings was reduced to BA plus 200 basis points (previously BA plus 350 bps). - Standby fees charged on unused borrowing availability was reduced to 25 basis points (previously 50 bps). - Hardwoods LP is subject to a fixed charge coverage ratio (calculated on a trailing twelve month basis as the ratio of earnings before interest, taxes, depreciation and amortization less cash taxes less capital expenditures less distributions, divided by interest plus principal payments on capital lease obligations) of not less than 1.1 to 1. However, under the terms of the renewal, this covenant shall not apply so long as the unused availability under the credit line is in excess of $2.0 million (previously the fixed charge coverage ratio applied at all times). - No closing fee was paid related to the credit facility renewal All other terms of the renewed credit facility are substantially unchanged from Hardwoods LP's previous revolving credit facility as described in the Hardwoods. "We continue to enjoy strong service from our Canadian bankers, are pleased to have renewed our credit arrangements on more favourable terms with them through to August 2016," commented Lance Blanco, Hardwoods' President and CEO. "Hardwoods will benefit from improved borrowing rates and a more flexible covenant under this Canadian credit facility. Combined with our U.S. credit facility which we renewed earlier this year, we have committed financing in place on both sides of the border with unused borrowing capacity available for Hardwoods to pursue its market expansion strategy," said Blanco. Hardwoods Distribution Inc. is one of North America's largest distributors of high-grade hardwood lumber, sheet goods and architectural millwork to the cabinet, moulding, millwork, furniture and specialty wood products industries. The Company currently operates a network of 30 distribution centers in the U.S. and Canada.