Fortress Global Enterprises Inc. ("Fortress") announces that its wholly owned subsidiaries, Fortress Specialty Cellulose Inc. and Fortress Bioenergy Ltd. (together, the "Borrowers") have entered into a financing agreement with their secured lenders or their affiliates (together, the "Lenders"), providing for a senior secured credit facility in the amount of up to $15 million.
The first advance under the facility in the amount of $2.5 million will be completed tomorrow, with additional drawdowns available to the Borrowers from time to time in accordance with preapproved budgets and subject to customary conditions.
The Facility is designed to provide the Company with supplemental liquidity to allow for uninterrupted operations in order to execute its previously announced strategic and financing initiative (the “Strategic Initiative”), which includes seeking and pursuing a recapitalization, restructuring and/or business combination transaction.
The facility is guaranteed by the Fortress group of companies and will be secured by a first ranking security interest over all present and after acquired assets and property of Fortress and its subsidiaries.
In addition, $10 million of the facility remains subject to approval of the Québec Government. The Facility will accrue interest at a rate of 10% per annum, payable monthly in arrears.
The Company Fortress operates its dissolving pulp business at the Fortress Specialty Cellulose mill located in Thurso, Canada, which also operates in the renewable energy generation sector through its cogeneration facility.