EDMONTON, Aug. 28 /CNW/ -- Bri-Chem Corp. ("Bri-Chem") (TSX Venture Exchange: BRY) a leading Canadian wholesale distributor of industrial drilling fluids, steel products and services, today announced the approval of a $40 million credit facility ("Facility") with HSBC Bank Canada.

The renewed and amended Facility consists of a $40 million operating loan, increasing to $45 million for the period December 1, 2009 to April 30, 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 $5 million acquisition loan to repay its $3.0 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.

About Bri-Chem

Bri-Chem is a wholesale distributor of industrial drilling fluid supplies and steel products and services to the oil and gas and construction industries. Bri-Chem provides over 100 domestic and foreign drilling fluid products to customers throughout Alberta, British Columbia and Saskatchewan and distributes drill pipe, carbon steel welded pipe, carbon steel seamless pipe, stainless steel welded pipe, stainless steel seamless pipe, tubing & casing, sucker rods, galvanized steel products as well as fittings and flanges. Bri-Chem's customers operate in a wide range of industries, including oil & gas, manufacturing, forestry, agriculture, construction, and mining.

Forward Looking Statements

Certain statements contained in this press release, including statements which may contain words such as "could", "should", "expect", "anticipate", "believe", "will", and similar expressions and statements relating to matters that are not historical facts are forward looking statements. Such forward looking statements involve known and unknown risks and uncertainties which may cause the actual results, performances or achievements of Bri-Chem to be materially different from any future results, performances or achievements expressed or implied by such forward looking statements. Such factors include, but are not limited to, fluctuations in oil and gas activity levels, political and economic conditions, and the demand for products provided by Bri-Chem.

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