WINDSOR, ONTARIO -- (Marketwire) -- 01/11/13 -- Reko International Group Inc. (TSX VENTURE: REK) reported today that its previously announced commercial mortgage financing closed and is now fully funded. The mortgage, held by Motor City Community Credit Union, is in the amount of $5.6 million bearing interest at 6% per annum with a 5 year term and a 10 year amortization. Proceeds of the mortgage were used to pay out the existing mortgage with GE Capital Real Estate, pay all transaction costs associated with the mortgage and the remainder was used to reduce the Company's line-of-credit.
"Reko is pleased to take the next step forward in its business plan," said Diane Reko, chief executive officer. "This mortgage strengthens our balance sheet, reduces our annual debt service costs by more than $700,000 and better positions our capital structure to seize future opportunities. We are pleased that a local financial institution has stepped forward to fund this transaction. Throughout our existing relationship with Motor City Community Credit Union, they have demonstrated a thorough understanding and commitment to not just Reko, but our industry, our automotive focus and more broadly our community. We look forward to continuing our mutually beneficial relationship with Motor City Community Credit Union."
"We at Motor City Community Credit Union continue to recognize the importance of the automotive industry to the well-being of our community and Reko International Group Inc. exemplifies the highest standard and commitment in this industry," said Michael Powis, commercial lending manager at Motor City Community Credit Union. "We are both proud and honoured to be their financial partners."
About Reko International Group Inc.
Reko International Group Inc. is a publicly traded, certified woman owned manufacturing company located in Southwestern, Ontario. Established in 1976, Reko International Group Inc. is a diverse value-added designer and manufacturer of customized machining and engineering solutions to OEMs and their Tier I suppliers in dynamic sectors as rail equipment, oil and gas distribution, mining, military, capital equipment, and automotive.
About Motor City Community Credit Union
Motor City Community Credit Union is a full service financial institution and a co-operative credit union with roots planted in the Windsor community for almost 75 years. With three retail locations and commercial lending centre, Motor City's (MCCCU) mission is to enhance the quality of life of the community by delivering quality financial products and services effectively, efficiently and with excellence.
REKO INTERNATIONAL GROUP INC.469 Silver Creek Industrial DriveLakeshore, OntarioN8N 4W2www.rekointl.comSUBSIDIARIES/DIVISIONS:Canada:- Concorde Precision Machining Inc.- Reko Manufacturing Group Inc.United States:- Reko International Sales Inc.- Reko International Holdings Inc. - Reko Global Services, LLC
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Reko International Group Inc.
Carl A. Merton
Chief Financial Officer