SOURCE: Canexus Corporation

Canexus Corporation

August 30, 2016 16:08 ET

Canexus Completes Credit Agreement Extension

CALGARY, AB--(Marketwired - August 30, 2016) - Canexus Corporation (TSX: CUS) (the "Corporation" or "Canexus") today announced it has completed and executed an Amended and Restated Credit Agreement ("Bank Agreement") in a total amount of $425 million with its syndicate of bank lenders, whereby use of proceeds is for general corporate purposes, including capital expenditures, allowing sufficient liquidity to execute the Corporation's strategy. The Bank Agreement consists of a $350 million revolving facility with a maturity of August 31, 2018 and a $75 million non-revolving facility that will mature on May 30, 2017.

"We are pleased to have completed this extension and amendment to our Bank Agreement, which provides the Corporation sufficient liquidity to move ahead with its strategic plan focused on deleveraging the balance sheet and thereby increasing our financial flexibility to enhance our future opportunities to increase shareholder value," said Doug Wonnacott, President and Chief Executive Officer.

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 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.

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: expectations for improved operating performance and financial flexibility generally, the reliability of the Corporation's earnings expectations for chlor-alkali recovery, the strength and stability of the business fundamentals and the performance of the Corporation's North American Sodium Chlorate and Brazil business units, the ability to improve efficiency and maximize margins, expectations for the size and timing of cash operating improvements and the compound annual growth rate thereof, the Corporation's ability to reduce its bank indebtedness and the timing and quantum thereof, the Corporation's ability to lower its senior debt to earnings ratio, the Corporation's intention for free cash flow, the quantum of maintenance capital expenditures, the suspension of the Corporation's quarterly dividend and the outcome of litigation with Superior Plus Corp. as well as North American sodium chlorate capacity rationalization, softwood and hardwood inventory levels, softwood and hardwood growth, sodium chlorate exports from North America; North American chlor-alkali operating rates; US chlorine production, North American chlorine capacity rationalization, North American caustic soda demand, North American HCI production capacity and rationalization, expectations for North American HCI prices and demand, expectations for the oil and gas sector, Brazil pulp production and exports and Brazil chlor-alkali capacity utilization. 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 for those for which it is disclosed herein.

Contact Information

  • Further Information:

    Dean R. Beacon

    Senior Vice President, Finance and CFO
    Canexus Corporation
    (403) 571-7300

    Sarah Scott

    Investor Relations
    Canexus Corporation
    (403) 571-7397