Noble Iron Inc. Announces Additional Financing for its Houston Operations
Sept. 20, 2012
HOUSTON, TEXAS—(Marketwire – Sept. 20, 2012) – Noble Iron Inc. (TSX VENTURE:NIR) today announced approved financing for the purchase of approximately $10.0 Ml. U.S. of new rental fleet for its Southeast Texas equipment rental & dealership depot located at 505 Rankin Road, Houston, Texas.
The Company has secured approximately $7.2 Ml. U.S of manufacturer financing, to be drawn over a number of tranches, to acquire approximately $8.0 Ml. of Terex aerial work platforms and light construction equipment. This purchase will significantly expand Noble Iron Texas’ existing rental fleet offering, comprised primarily of heavy equipment including wheel loaders, excavators, skid steer loaders, and backhoe loaders – much of which was acquired through the acquisition of certain assets of Bane Machinery Houston LP in July 2012. The terms of the Terex fleet financing involve a total initial down payment of approximately 10%, a 63-month term, and a current indicated interest rate of approximately 6.50%, based on a floating LIBOR.
Separately, Noble Iron announced that it has taken delivery of approximately $1.4 Ml. U.S. of LiuGong Construction Machinery (“LiuGong”) equipment under the terms of its Southeast Texas exclusive dealership agreement with LiuGong, and that it has secured conventional lease financing in the amount of $0.70 Ml. for this fleet purchase. This financing has been provided by De Lage Landen Financial Services, Inc. (“DLL”), and is payable over 48-months, at a current interest rate of approximately 5.0%.
“These transactions mark a significant expansion of our business operations in Texas. The financings for our Texas operations together with the $25.0 Ml facility the Company has in place for its California operations are key milestones to Noble Iron’s continued growth into the rental and dealership channels,” stated Willie Swisher, the Company’s Chief Executive Officer.
Nabil Kassam, Executive Chairman, added, “Since launching into the rental and dealership sectors in August 2011, we have built an equipment fleet size of over $40.0 Ml. The Company is today operating in California, Texas, Canada and Australia. However, Noble Iron is still in its infancy. Our goal is to build a different and better operating model in the equipment industry, and the disruptive technologies and processes Noble Iron’s team has been developing have yet to be unveiled. We are pleased that our top tier manufacturer partners, Terex and LiuGong, support and appreciate the potential of Noble Iron.”
More information can be found at www.sedar.com.
About Noble Iron Inc. (TSX VENTURE:NIR)
Noble Iron Inc. operates in three complementary sectors: equipment rental, equipment dealership and enterprise software for the construction and industrial equipment industry.
The Company operates its equipment rental business and dealership under the name “Noble Iron.” Noble Iron rental depots currently serve customers in California and Texas. Noble Iron’s dealership offer select manufacturers’ equipment and accessories for sale, and is the exclusive distributor of LiuGong Construction Machinery equipment in Southeast Texas.
The Company’s software division, Texada Software, provides software applications to manage the complete equipment ownership lifecycle, from acquisition, rental, sales and other activities, through to disposal. Texada offers in-the-cloud or client-based software, and is scalable to meet the needs of any customer.
The Company can be reached at 1-800-361-1233 or 1-519-836-7073, or at www.nobleiron.com.
This news release may contain forward-looking statements which reflect the Company’s current expectations regarding future events. The forward-looking statements are often, but not always, identified by the use of words such as “seek”, “anticipate”, “plan, “estimate”, “expect”, “intend” and statements that an event or result “may”, “will”, “should”, “could” or “might” occur or be achieved and other similar expressions. These forward-looking statements involve risk and uncertainties, including the difficulty in predicting acceptance of and demands for new products, the impact of the products and pricing strategies of competitors, delays in developing and launching new products, fluctuations in operating results and other risks, any of which could cause results, performance, or achievements to differ materially from the results discussed or implied in the forward-looking statements. Many risks are inherent in the industries in which the Company participates; others are more specific to the Company. The Company’s ongoing quarterly filings should be consulted for additional information on risks and uncertainties relating to these forward-looking statements. Investors should not place undue reliance on any forward-looking statements. Management assumes no obligation to update or alter any forward-looking statements whether as a result of new information, further events or otherwise.
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Corporate communications contact:
Noble Iron Inc.
Chief Financial Officer