On March 8, 2021, SECURE and Tervita entered into an arrangement agreement to combine into an all-equity transaction, thereby creating a stronger midstream infrastructure and environmental solutions business (the âTransactionâ). The merged company will operate as SECURE and will remain listed on the
SECURE has committed with nine financial institutions and chartered banks to provide the Combined Company with financing through a three-year, $ 800 million credit facility (the âCredit Facilityâ), subject to the satisfaction of certain conditions precedent. The credit facility will be used to replace and repay SECURE’s existing first and second lien credit facilities and Tervita’s first lien credit facility. Tervita’s senior notes will remain in circulation and will optimize the capital structure while maintaining adequate liquidity. The effectiveness of the Credit Facility will itself be subject to compliance with certain financial covenants, liquidity criteria and customary conditions, including completion of the Transaction. It is expected that each of the effective conditions of the Credit Facility, with the exception of the proposed merger of SECURE and Tervita, will be satisfied prior to the completion of the Transaction.
“The increase in the credit facility that will be in place at the end of our merger with Tervita provides increased financial flexibility to the combined company,” said
As previously stated, SECURE will continue to focus on debt repayment following the close of the Transaction to achieve the combined company’s target debt / EBITDA ratio of less than 2.5x, which is expected to be achieved within two years. closing of the Transaction.
SECURE is also pleased to announce that it has a firm commitment for a new $ 30 million unsecured letter of credit facility guaranteed by
Special shareholders’ meeting
Further information on how to participate in General Meetings, as well as voting instructions for shareholders registered with the
Certain statements contained in this press release constitute “forward-looking statements” and / or “forward-looking information” within the meaning of applicable securities laws (collectively, “forward-looking statements”). When used in this press release, the words “achieve”, “improve”, “wait”, “plan”, “position”, “priority”, “achieve”, “result”, “strategy”, ” target âandâ will â, and similar expressions, with respect to SECURE or the Combined Company, or their respective management, are intended to identify forward-looking statements. These statements reflect SECURE’s current views with respect to future events. and operating performance and speak only as of the date of this press release.
In particular, this press release contains or implies forward-looking statements concerning: the satisfaction of the conditions necessary to be fulfilled for the Credit Facility to be concluded and the timetable thereof; the expected terms and conditions of the credit facility and the use of the proceeds thereof; expectations regarding the financial strength and flexibility of the combined company; debt repayment plans; the ability to achieve the combined company’s target debt / EBITDA ratio of less than 2.5x; the stability and financial flexibility of the capital structure of the combined company; and the meetings of each of the shareholders of SECURE and of the security holders of Tervita.
Forward-looking statements involve important known and unknown risks and uncertainties, should not be interpreted as guarantees of future performance or results, and will not necessarily constitute precise indications as to the achievement of such results. Readers are cautioned not to place undue reliance on these statements, as a number of factors could cause actual results to differ materially from the results discussed in these forward-looking statements, including, but not limited to, factors mentioned under the heading âRisk factorsâ. . . . . in our annual information form for the year ended
Although the forward-looking statements contained in this press release are based on what the Company considers to be reasonable assumptions, including that the conditions for and the timing of the credit facility to be completed, the Company does not can assure investors that the results will be consistent with these forward-looking statements. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement. Unless otherwise required by law, SECURE does not intend, nor assumes any obligation, to update these forward-looking statements.
SECURE is a listed energy company
TSX Symbol: SES
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