Davie Yards gets $10 million loan from Quebec

Levis, Quebec, shipbuilder Davie Yards Inc. (TSX:DAV) reports that it has entered into an agreement under which Investissement Quebec will provide it with a CDN$10 million loan.

The loan has a term of 48 months, has an interest rate of 9% per annum and is secured against certain claims and accounts receivable of Davie. The loan is provided under the Strategic Support for Investment Program (PASI), administered by Investissement Quebec.

"We are pleased to see the continued support from Investissment Quebec and the Quebec Government through their PASI-program, and we believe that the company now is significantly closer to securing the long-term activity at the yard," said Steinar Kulen, the CEO of Davie.

In addition, the company has amended its loan agreement with Offshore Holding, increasing it by NOK5.9 million (CDN$1,116,667), all terms according to the original Loan Agreement.

Offshore Holding is the controlling shareholder of Davie Holding AS, which holds 71.88% of the common shares of the company.