TSE:ENT $
ENTREC Convertible Debenture Amendments Take Effect

June 17, 2016

Acheson, Alberta, Canada – ENTREC Corporation (“ENTREC” or the “Corporation”), an employee-owned heavy haul transportation and crane solutions provider, is pleased to announce that it has entered into a second supplemental indenture with the trustee for its 7.00% convertible unsecured subordinated debentures originally due October 31, 2017 (ENT.DB) (the “Debentures”) to give effect to amendments to the Debentures that were approved at a special meeting of Debenture holders held on June 10, 2016.  The amendments result in the following changes to the Debentures:

1) INCREASING the underlying interest rate from 7.00% to 8.50% effective October 31, 2016 (being the commencement of the next interest rate accrual period);

2) DECREASING the conversion price from $2.60 to $1.00 per share of the Corporation;

3) EXTENDING the maturity date from October 31, 2017 to June 30, 2021;

4) PERMITTING the Corporation to redeem the Amended Debentures, in whole or in part, at any time up to June 30, 2021, at a price equal to the principal amount thereof plus accrued and unpaid interest to, but excluding the date of the redemption;

5) REMOVING the Corporation’s ability to, upon the conversion of the Amended Debentures by a holder thereof, elect to pay the holder cash in an amount and at such time as determined in accordance with the Indenture; and

6) REMOVING the Corporation’s ability to undertake any rights offering, issuance of securities, subdivision of the common shares of the Corporation, dividend or other distribution on the common shares of the Corporation or any other securities, capital reorganization, reclassification or any similar type of transaction in which (i) the number of securities to be issued, (ii) the price at which securities are to be issued, converted or exchanged, or (iii) any property or cash that is to be distributed or allocated, is in whole or in part based upon, determined in reference to, related to or a function of, directly or indirectly, (x) the exercise or potential exercise of the Common Share Redemption Right (as defined in the trust  indenture governing the Debentures) or the Common Share Repayment Right (as defined in the trust indenture governing the Debentures), or (y) the Current Market Price (as defined in the trust indenture governing the Debentures) determined in connection with the exercise or potential exercise of the Common Share Redemption Right or the Common Share Repayment Right.

About ENTREC

ENTREC is an employee-owned heavy haul transportation and crane solutions provider to the oil and natural gas, construction, petrochemical, mining and power generation industries. ENTREC is listed on the Toronto Stock Exchange under the symbol ENT.

For further information, please contact:

John M. Stevens – President & CEO

Telephone: (780) 960-5625

Jason Vandenberg – CFO

Telephone: (780) 960-5630

www.entrec.com

Related Content

ENTREC Corporation Named One of Alberta’s Top 65 Employers for 2014

February 5, 2014

ENTREC Corporation Named One of Alberta’s Top 65 Employers for 2014 February 5, 2014 Spruce Grove, Alberta, Canada – ENTREC […]

Read More
ENTREC Fourth Quarter And Year End Conference Call and Webcast

February 25, 2014

ENTREC Fourth Quarter And Year End Conference Call and Webcast February 25, 2014 Spruce Grove, Alberta, Canada – ENTREC Corporation […]

Read More
ENTREC Closes $240 Million Asset-Based Senior Credit Facility

March 7, 2014

ENTREC Closes $240 Million Asset-Based Senior Credit Facility March 7, 2014 Spruce Grove, Alberta, Canada – ENTREC Corporation (“ENTREC”) announced […]

Read More