SOURCE: Canexus Corporation

Canexus Corporation

June 04, 2015 16:30 ET

Canexus Agrees to Sell NATO Asset

CALGARY, AB--(Marketwired - June 04, 2015) - Canexus Corporation (TSX: CUS) (the "Corporation" or "Canexus") has entered into an agreement to sell its North American Terminal Operations ("NATO") in Bruderheim, Alberta to Cenovus Energy Inc. for $75 million cash consideration, subject to adjustment. The Purchase and Sale Agreement has an economic effective date of June 30, 2015, and closing is expected for August 31, 2015, subject to certain closing conditions. All net proceeds will be used to pay down bank debt.

The NATO transaction includes the unit train and manifest operations, pipeline connections as well as certain above and below ground storage capabilities. NATO was identified as a non-core asset after a portfolio review in August 2014, at which time the Corporation hired financial advisors to begin a process to sell the asset. A robust process was executed over several months, including extensive due diligence completed by a number of interested parties.

In entering into the agreement, Management and the Board considered, among other things, i) the results of the comprehensive and global sales auction process conducted with the assistance of our financial advisors, CIBC World Markets Inc. and Credit Suisse; ii) the current and potential operating results of the NATO business under Canexus management; iii) the transfer of future NATO commitments to a highly reputable and creditworthy counterparty; and iv) the advice of Canexus' financial advisors.

"We are pleased to announce the agreement to sell our NATO asset, as we believe it advances Canexus' organizational objectives to create strategic alignment within our portfolio, re-focus our organization on our core competencies and strengthen our balance sheet," said Doug Wonnacott, President and CEO. "By returning to our roots as a pure chemical producer, we are returning to what we do best. Canexus can now dedicate its time and resources to continuous improvement of our core chemical assets, which we believe will generate the most value for shareholders."

Forward-Looking Statements

This news release contains forward-looking statements and information relating to expected future events and financial and operating results of the Corporation and its subsidiaries, including with respect to: the potential sale of NATO, including the timing of closing, the satisfaction of conditions relating thereto, the use of proceeds and the impact on the Corporation's organizational objectives, portfolio, balance sheet and other assets. The use of the words "expects", "anticipates", "continue", "estimates", "projects", "should", "believe", "plans", "intends", "may", "will" or similar expressions are intended to identify forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in such forward-looking statements for a variety of reasons, including market and general economic conditions, future costs, treatment under governmental regulatory, tax and environmental regimes and the other risks and uncertainties detailed under "Risk Factors" in the Corporation's Annual Information Form filed on the Corporation's SEDAR profile at www.sedar.com. Management believes the expectations reflected in these forward-looking statements are currently reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. Due to the potential impact of these factors, the Corporation disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law. Any financial outlook information contained in this news release about prospective results of operations, financial position or cash flows is based on assumptions about future events, including economic conditions and proposed courses of action, based on Management's assessment of the relevant information currently available. Readers are cautioned that such financial outlook information contained in this news release should not be used for purposes other than those for which it is disclosed herein.

About Canexus

Canexus produces sodium chlorate and chlor-alkali products largely for the pulp and paper and water treatment industries. Our four plants in Canada and two at one site in Brazil are reliable, low-cost, strategically located facilities that capitalize on competitive electricity costs and transportation infrastructure to minimize production and delivery costs. Canexus targets opportunities to maximize shareholder returns and delivers high-quality products to its customers and is committed to Responsible Care® through safe operating practices. Canexus' common shares (CUS) and debentures (Series III - CUS.DB.A; Series IV - CUS.DB.B; Series V - CUS.DB.C; Series VI - CUS.DB.D) trade on the Toronto Stock Exchange. More information about Canexus is available at www.canexus.ca.

Contact Information

  • Further Information:

    Dean R. Beacon
    Senior Vice President, Finance and CFO
    Canexus Corporation
    (403) 571-7300

    Robin Greschner
    Investor Relations
    Canexus Corporation
    (403) 571-7356