Canexus Corporation
TSX : CUS

Canexus Corporation

June 12, 2014 08:57 ET

Canexus Corporation Announces Closing of $10,550,000 of Over-Allotment Option on $75,000,000 Convertible Unsecured Subordinated Debentures

CALGARY, ALBERTA--(Marketwired - June 12, 2014) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Canexus Corporation (TSX:CUS) (the "Corporation" or "Canexus") is pleased to announce that it has issued an additional $10,550,000 of 6.50% Convertible Unsecured Subordinated Series VI Debentures. This issuance was pursuant to the partial exercise of the over-allotment option (the "Over-Allotment Option") granted to a syndicate of underwriters led by CIBC, National Bank Financial Inc., Scotiabank and TD Securities Inc. under the Corporation's recently completed offering of $75,000,000 of 6.50% Convertible Unsecured Subordinated Series VI Debentures (the "Offering").

Canexus intends to use the net proceeds of the Offering, including the net proceeds from the exercise of the Over-Allotment Option, initially to repay indebtedness under its credit facility which will then be available to be drawn as required to fund the repayment of the 5.75% Series III Convertible Unsecured Subordinated Debentures maturing December 31, 2015 (but redeemable at par after December 31, 2014, plus accrued and unpaid interest), and for working capital and/or general corporate purposes.

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 also provides fee-for-service hydrocarbon transloading services to the oil and gas industry from its terminal at Bruderheim, Alberta. 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.

Forward-Looking Statements

This press release contains forward-looking statements. More particularly, this press release contains statements concerning the anticipated use of the net proceeds of the Offering. By their nature, forward-looking statements involve a variety of assumptions, known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in such forward-looking statements 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. Although Canexus believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them because Canexus can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties.

The forward-looking statements contained in this press release are made as of the date hereof and Canexus undertakes no obligations to update publicly or revise any forward looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

Notice to Readers

This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities of the Corporation in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities being offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act of 1933 and other applicable securities laws.

Contact Information

  • Canexus Corporation
    Richard McLellan, CA
    Senior VP, Finance and CFO
    (403) 571-7300

    Canexus Corporation
    Lavonne Zdunich, CA
    Investor Relations
    (403) 571-7356
    www.canexus.ca