Westshore obtains $165-million credit facility

Executive Summary

• Westshore Terminals Limited Partnership, along with its parent corporation and general partner, has entered into a new $165-million revolving credit facility with Royal Bank of Canada and Bank of Nova Scotia.
• This facility serves as an increase to an existing $40-million operating facility and is available for general corporate purposes, including commitments related to the company's potash project.
• The facility matures on February 20, 2030, with specific step-downs in the facility limit scheduled for December 2028 and December 2029.

Key Details

• Facility Amount: $165-million revolving operating loan available in Canadian and U.S. dollars.
• Step-Downs: The facility reduces to $100-million effective December 31, 2028, and further reduces to $50-million effective December 31, 2029.
• Swing Line: Includes a $15-million swing line facility available via Canadian prime/U.S. base rate loans and letters of credit.
• Maturity: The credit facility matures on February 20, 2030 (four years from closing).
• Interest Rates:
  • CAD Borrowings: Option between term CORRA (plus 0.29547% for 1-month or 0.32138% for 3-month terms) + 1.25%, or Prime rate + 0.25%.
  • USD Borrowings: Option between term SOFR (plus 0.10% adjustment) + 1.25%, or Base rate + 0.25%.
  • Letters of Credit: Amount of letter of credit plus 0.25%.
• Repayment Structure: Interest-only payments with bullet repayment on maturity; required repayments align with the facility limit step-downs in 2028 and 2029.
• Financial Covenants:
  • Trailing 12-month EBITDA of the corporation must not be less than $75-million.
  • Aggregate distributions on common shares in any consecutive prior four quarters may not exceed the trailing 12-month EBITDA.
• Security: Secured by an existing debenture ($195-million principal) creating a fixed and specific charge on all of Westshore's assets, pledged to RBC. Guaranteed by the general partner and the corporation, secured by general security agreements over personal and real property.
• Lenders: Royal Bank of Canada (Lead Arranger, Sole Bookrunner, Administrative Agent) and Bank of Nova Scotia.
• Existing Facility: Increases an existing $40-million operating facility which was undrawn as of February 20, 2026, and was scheduled to mature on August 31, 2026.