ISSUES NOTICE TO REDEEM $62.5 MILLION OF ITS 9.00% SENIOR SECURED NOTES DUE 2027
NET DEBT BALANCE OF APPROXIMATELY $700 MILLION AT THE END OF Q3/24, REFLECTING GROSS DEBT REPAYMENT OF APPROXIMATELY $100 MILLION DURING THE THIRD QUARTER
CALGARY, Alberta, Oct. 01, 2024 (GLOBE NEWSWIRE) -- Enerflex Ltd. (TSX:EFX) (NYSE:EFXT) ("Enerflex" or the "Company") announced that it has delivered a notice of partial redemption of its 9.00% Senior Secured Notes due 2027 (the "Notes").
All amounts presented are in U.S. Dollar ("USD") unless otherwise stated.
Partial Redemption of Senior Secured Notes
Enerflex has issued a notice of partial redemption for $62.5 million (or 10% of the aggregate principal amount originally issued) of its Notes. The redemption will be completed on October 11, 2024 (the "Redemption Date") at a redemption price of 103% of the principal amount of the notes being redeemed, plus accrued and unpaid interest up to, but excluding, the Redemption Date. The redemption of the Notes will be funded with available liquidity, which includes approximately $100 million of cash and cash equivalents as at September 30, 2024 and the undrawn portion of Enerflex's lower cost $800 million revolving credit facility (the "RCF").
As at September 30, 2024, Enerflex's net debt1 balance was approximately $700 million, which reflects gross debt repayment of approximately $100 million during the third quarter. Debt repayment during the third quarter was funded through cash provided by operating activities, including a reduction in net working capital, and cash balances. Enerflex continues to expect net working capital movements will be a modest source of cash during the second half of 2024 and for fiscal 2024.
Management Commentary
"The partial redemption of our Notes reflects on-going focused efforts to reduce debt, lower net finance costs, and optimize Enerflex's debt stack," said Preet Dhindsa, Enerflex's Senior Vice President and Chief Financial Officer. "We are pleased with the results of these efforts to date and expect to make further progress in coming quarters. The recent extension and expansion of the RCF provides ample liquidity to support our global business and we remain on track to reach our target leverage bank-adjusted net debt-to-EBITDA ratio of 1.5x to 2.0x."
Marc Rossiter, President and Chief Executive Officer of Enerflex commented, "Since completing the acquisition of Exterran approximately two years ago, we have effectively integrated the two companies and are generating solid free cash flow. We see a visible path for Enerflex to increase shareholder returns and look forward to providing further updates to stakeholders in coming months."
Third Quarter Results
Enerflex plans to release its financial ...
