CALGARY, ALBERTA - July 12, 2012 /CNW/ - Newalta Corporation ("Newalta") (TSX:NAL) announced that it amended and extended its revolving credit facility with a syndicate of banks led by CIBC. Key changes to the agreement include:
- Extension of the term of the agreement by three years to July 12, 2015 with annual extensions available at management's option
- An increase in the amount available to $225 million with an accordion feature providing an additional $50 million
- Improved covenant protection with Total Debt to EBITDA increasing from 3.5x to 4.0x
- The increase of the lending syndicate from five to six institutions with the addition of Bank of America Merrill Lynch
- Improved pricing
"These positive changes to our credit facility reflect our strong capital growth trajectory in both Canada and the U.S., and improved debt profile," said Mike Borys, Executive Vice President and Chief Financial Officer of Newalta, "The amendments will provide us with increased credit flexibility, covenant protection and reduced interest costs through the next three years."
Newalta is North America's leading provider of innovative, engineered environmental solutions that enable customers to reduce disposal, enhance recycling and recover valuable resources from industrial residues. We serve customers onsite directly at their operations and through a network of 85 locations in Canada and the U.S. Our proven processes, portfolio of more than 250 operating permits and excellent record of safety make us the first choice provider of sustainability enhancing services to oil, natural gas, petrochemical, refining, lead, manufacturing and mining markets. With a skilled team of more than 2,000 people, two decade track record of profitable expansion and commitment to commercializing new solutions, Newalta is positioned for sustained future growth and improvement. Newalta trades on the TSX as NAL. For more information, visit www.newalta.com.
This press release contains a reference to Total Debt to EBITDA, a financial measure that does not have any standardized meaning prescribed by International Financial Reporting Standards (IFRS) and may not be comparable to similar measures presented by other corporations or entities. Total Debt comprises outstanding indebtedness under the Credit Facility and the Senior Unsecured Debentures. EBTIDA is a non-IFRS measure, the closest measure of which is net earnings. For the purpose of calculating the covenant, EBITDA is defined as the trailing twelve-months consolidated net income for Newalta before the deduction of interest, taxes, depreciation and amortization, and non-cash items (such as non-cash stock-based compensation or gains and losses on asset dispositions). Additionally, EBITDA is normalized for any acquisitions or dispositions as if they had occurred at the beginning of the period.