Enerflex Systems Income Fund
TSX : EFX.UN

Enerflex Systems Income Fund

December 20, 2006 12:02 ET

Enerflex Announces Debt Restructuring and Increased Operating Line

CALGARY, ALBERTA--(CCNMatthews - Dec. 20, 2006) - Enerflex Systems Income Fund ("Enerflex", or "the Fund") (TSX:EFX.UN) announced today the closing of a debt restructuring process that replaces its existing debt agreements with $100.6 million senior secured notes and a $150 million three year revolving bank credit facility. These combined facilities provide Enerflex the financial flexibility to continue with its existing growth strategy. As of December 18, 2006 Enerflex has borrowed $126.5 million under these facilities.

The senior notes and bank credit facility share security on a pari passu basis with collateral consisting of a fixed and floating charge on the Fund's Canadian assets and guarantees from various subsidiary companies.

The senior notes are due $21 million on December 20, 2013 and $79.6 million on December 20, 2016. Interest is fixed at a weighted average rate of 5.41%. The bank credit facility is due on June 30, 2009 and may be renewed annually. Interest is based on a floating rate at the generally available banker acceptance rate plus an applicable margin.

Enerflex is a leading Canadian supplier of products and services to the global oil and gas production industry. Our core expertise lies between the wellhead and the pipeline. Enerflex provides natural gas compression, power generation and process equipment for sale, rent or lease, hydrocarbon production and processing facilities, electrical, instrumentation and controls services and a comprehensive package of field maintenance and contracting capabilities. Through our ability to provide these products and services in an integrated manner, or as stand-alone offerings, Enerflex offers its customers a unique value proposition.

Headquartered in Calgary, Canada, Enerflex has approximately 2,700 employees. Enerflex, its subsidiaries, interests in affiliates and joint-ventures operate in Canada, Australia, the Netherlands, the United States, Germany, Pakistan, Egypt, Indonesia, Malaysia and Poland. Enerflex's trust units trade on the Toronto Stock Exchange under the symbol "EFX.UN".

Forward-Looking Statements

Certain information contained herein constitutes forward-looking information under applicable securities laws. All statements, other than statements of historical fact, which address activities, events or developments that we expect or anticipate may or will occur in the future, are forward-looking information. Forward-looking information typically contains statements with words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "potential", "targeting", "intend", "could", "might", "should", "believe" or similar words suggesting future outcomes or outlook. The following discussion is intended to identify certain factors, although not necessarily all factors, which could cause future outcomes to differ materially from those set forth in the forward-looking information.

The risks and uncertainties that may affect the operations, performance, development and results of Enerflex's businesses include, but are not limited to, the following factors: the impact of general economic conditions; industry conditions, including the adoption of new environmental and other laws and regulations and changes in how they are interpreted and enforced; volatility of oil and gas prices; oil and gas product supply and demand; risks inherent in Enerflex's ability to generate sufficient cash flow from operations to meet its current and future obligations; increased competition; the lack of availability of qualified personnel or management; labor unrest; fluctuations in the foreign exchange or interest rates; stock market volatility, opportunities available to or pursued by Enerflex and other factors, many of which are beyond the control of Enerflex. The reader is cautioned that these factors and risks are difficult to predict and that the assumptions used in the preparation of such information, although considered reasonably accurate by Enerflex at the time of preparation, may prove to be incorrect or may not occur. Accordingly, readers are cautioned that the actual results achieved will vary from the information provided herein and the variations may be material. Readers are also cautioned that the foregoing list of factors and risks is not exhaustive. Additional information on these and other risks, uncertainties and factors that could affect Enerflex's operations or financial results are included in our filings with the securities commissions or similar authorities in each of the provinces of Canada, as may be updated from time to time. There is no representation by Enerflex that actual results achieved will be the same in whole or in part as those set out in the forward-looking information. Furthermore, the forward-looking statements contained herein are made as of the date hereof, and Enerflex does not undertake any obligation to update publicly or to revise any forward-looking information, whether as a result of new information, future events or otherwise, unless required by law. Any forward-looking information contained herein is expressly qualified by this cautionary statement.

Contact Information

  • Enerflex Systems Income Fund
    Leonard Cornez
    Vice-President & CFO
    (403) 236-6800
    (403) 720-4385 (FAX)
    or
    Enerflex Systems Income Fund
    P. John Aldred
    Executive Chairman
    (403) 236-6800
    (403) 236-6816 (FAX)
    or
    Enerflex Systems Income Fund
    Rhonda Bennetto
    Manager, Investor Relations
    (403) 236-6800
    (403) 720-4385 (FAX)
    or
    Enerflex Systems Income Fund
    J. Blair Goertzen
    President & CEO
    (403) 236-6800
    (403) 720-4385 (FAX)