Bri Chem Corporation, a leading Canadian wholesale distributor of industrial drilling fluids, steel products and services, has announced the approval of a USD 40 million credit facility with HSBC Bank Canada.

The renewed and amended facility consists of a USD 40 million operating loan, increasing to USD 45 million for the period December 1st 2009 to April 30th 2010. Pricing for the facility is at prime plus 0.75%, with a sliding scale increase based on debt to tangible net worth covenant ratios. The facility contains the usual positive and negative covenants and certain financial ratio requirements.

In addition, Bri Chem previously anticipated utilizing a USD 5 million acquisition loan to repay its USD 3 million subordinate loan with HSBC Capital, however, the acquisition loan was not implemented and the subordinate loan with HSBC Capital is currently being repaid in monthly installments.