Canadian Equipment Rentals Corp. entered into a Loan and Security Agreement with Maynbridge Capital Inc. The principal amount of the Maynbridge loan is $20.4 million and it has a term of one year (plus a day), with an option to extend for an additional year. The loan bears interest at 12.75% per annum and will be serviced by six months of interest only payments followed by six months of blended interest and principal payments. The proceeds from the loan will be used to repay in full CERC's existing syndicated credit facility. The loan has no financial covenant requirements as it is to be secured through the value of the Company's rental assets and a $2.5 million guarantee from Mr. Dean Swanberg.

The company announced that it will be appointing Mr. Dean Swanberg to the Company's Board of Directors where his experience and reputation as a veteran oilfield executive in Western Canada will be of great value to the company. In conjunction with financing, the directors of CERC will be appointing Mr. Dean Shillington, CEO of Maynbridge Capital, to the Company's Board of Directors. Mr. Shillington's business and finance expertise will greatly benefit the company as it executes on its new sharply focused business plan.