Bri-Chem Corp. announced the amendment of its senior credit facility with the Canadian Imperial Bank of Commerce. The borrowing base has been amended and increased to $37.5 million from $25 million to better accommodate inventory stockpiling in support of the expected increase in North American business activity, the $3.0 million availability block, imposed on the previous facility, has been removed and the tangible net worth covenant has been replaced with a fixed charge coverage ratio covenant of 1.0, tested on a rolling 12-month basis.

The ABL Facility is committed until October 31, 2024. The ABL Facility bears interest in two tiers, either at the Canadian prime rate plus 0.50% or bankers' acceptance and SOFR rate plus 2.00%, or when in the last 20% of average availability for a fiscal quarter, at the Canadian prime rate plus 0.75% or bankers' acceptance and SOFR rate plus 2.25%. The ABL Facility is secured by a general security agreement covering all present and after acquired inventory and receivables, as well as a postponement of claims from related parties.

There is a standby fee of 0.25% on unused amounts of the ABL Facility.