Jun 22, 2011 22:15 ET
Enerflex Announces Closing of Private Placement of $90.5 Million of Unsecured Notes
CALGARY, ALBERTA--(Marketwire - June 22, 2011) -
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Enerflex Ltd. ("Enerflex" or the "Company") (TSX:EFX) is pleased to announce that it has closed a private placement of unsecured notes which was previously communicated to shareholders in management's discussion and analysis that accompanied the Company's unaudited interim consolidated financial statements for the three months ended March 31, 2011. The private placement, conducted on a best-efforts basis and co-led by TD Securities and Scotia Capital, resulted in the successful issuance of CDN$50.5 million of 5 year notes bearing an interest rate of 4.841% and CDN$40 million of 10 year notes bearing an interest rate of 6.011% ("Notes"). These Notes rank pari passu with existing corporate indebtedness.
The Company plans to use the proceeds of the issuance of these Notes to repay existing corporate indebtedness incurred as part of the spin-off transaction resulting in Enerflex becoming an independent public company in early June, to fund working capital and for general corporate purposes. There will be no required or scheduled repayments of principal prior to the maturity date of each respective tranche.
Enerflex is the single source supplier of products and services to the global oil and gas production industry. Enerflex provides natural gas compression and oil and gas processing equipment for sale or lease, refrigeration systems and power generation equipment and a comprehensive package of field maintenance and contracting capabilities. Through Enerflex's ability to provide these products and services in an integrated manner, or as standalone offerings, Enerflex offers its customers a unique value proposition.
Headquartered in Calgary, Canada, Enerflex has approximately 2,800 employees. Enerflex, its subsidiaries, interests in affiliates and joint-ventures operate in Canada, the United States, Argentina, Colombia, Australia, the Netherlands, the United Kingdom, Germany, Pakistan, the United Arab Emirates, Egypt, Oman and Indonesia. Enerflex's shares trade on the Toronto Stock Exchange under the symbol "EFX". For more information about Enerflex, go to www.enerflex.com.
Advisory Regarding Forward-Looking Statements
To provide Enerflex shareholders and potential investors with information regarding Enerflex, including management's assessment of future plans, Enerflex has included in this news release certain statements and information that are forward-looking statements or information within the meaning of applicable securities legislation, and which are collectively referred to in this advisory as "forward-looking statements." Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the future circumstances, outcomes or results anticipated in or implied by such forward-looking statements will occur or that plans, intentions or expectations upon which the forward-looking statements are based will occur.
Forward-looking information involves known and unknown risks and uncertainties and other factors, which may cause or contribute to Enerflex achieving actual results that are materially different from any future results, performance or achievements expressed or implied by such forward-looking information. Such risks and uncertainties include, among other things, the reliability of Toromont's historical financial information as an indicator of Enerflex's historical or future results; potential tax liabilities if the requirements of the tax-deferred spinoff rules are not met; the effect of Enerflex's rights plan on any potential change of control transaction; obtaining financing; and reductions in oil and natural gas prices.
These factors are not exhaustive. The reader is cautioned that these factors and risks are difficult to predict and that the assumptions used in the preparation of such information, although considered reasonably accurate at the time of preparation, may prove to be incorrect. Readers are cautioned that the actual results achieved will vary from the information provided in this press release and that such variations may be material. Consequently, Enerflex does not represent that actual results achieved will be the same in whole or in part as those set out in the forward-looking information.
Furthermore, the statements containing forward-looking information that are included in this news release are made as of the date of this news release, and Enerflex does not undertake any obligation, except as required by applicable securities legislation, to update publicly or to revise any of the included forward-looking information, whether as a result of new information, future events or otherwise. The forward-looking information contained in this news release is expressly qualified by this cautionary statement.
This release is provided for information purposes only and shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the common shares in any jurisdiction (including the United States) in which such offer, solicitation or sale would be unlawful.