General Donlee Canada Inc. Announces New Credit Facilities

TORONTO, March 23, 2012 /PRNewswire/ - General Donlee Canada Inc. (TSX: GDI) ("General Donlee" or the "Company") is pleased to announce that its wholly owned subsidiary General Donlee Limited has entered into a new credit agreement with HSBC Bank Canada.

The agreement provides for credit facilities totaling $33 million, comprised of a $7.5 million revolving operating facility, a $22.5 million non-revolving term facility which can be drawn upon at the Company's option prior to December 31, 2012, and a $3 million optional capital lease facility. Borrowing costs are adjusted quarterly and are based on a pricing grid which is calculated using a ratio of net funded debt to EBITDA.

The credit agreement also includes a foreign exchange line under which the Company will have the option to enter into foreign currency hedging contracts with an aggregate face value of up to $25 million, and an interest rate SWAP facility under which the Company will have the option to enter into interest rate SWAP contracts with an aggregate face value of up to $15 million to hedge against interest rate exposure risk.

The new credit facilities will replace the existing credit facilities.

Garen Mikirditsian, Chief Executive Officer and Interim Chief Financial Officer of General Donlee said "The new credit agreement offers the Company additional financial flexibility, reduces our cost of borrowing, provides an expanded ability to hedge our foreign currency exposure and supports our plans to make investments in line with the Company's growth strategy." Mr. Mikirditsian added: "We are very pleased to work with HSBC Bank Canada and look forward to a long-term partnership in growing General Donlee."

About General Donlee Canada Inc.

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