Newalta Corporation

Newalta Corporation

November 14, 2011 10:25 ET

Newalta Corporation Closes C$125 Million Senior Unsecured Debentures and Issues Notice to Redeem Convertible Debentures

CALGARY, ALBERTA--(Marketwire - Nov. 14, 2011) -


Newalta Corporation ("Newalta") (TSX:NAL) today announced the closing of its previously announced private placement of Senior Unsecured Debentures, Series 2 due 2019 (the "Debentures") with an aggregate principal amount of C$125 million (the "Offering"). The Debentures will bear interest at the rate of 7.75% per annum, payable semi-annually in arrears.

The net proceeds of the Offering will be used to redeem Newalta's convertible unsecured subordinated debentures at a redemption price equal to the principal value of the convertible debentures plus accrued and unpaid interest. A notice to redeem the convertible debentures has been provided to the indenture trustee with the redemption to occur on December 15, 2011. Upon redemption, the convertible debentures will be delisted from trading on the Toronto Stock Exchange. The remaining funds will be used to repay a portion of Newalta's indebtedness under its Credit Facility. After applying the estimated net proceeds from the Offering, on an as adjusted basis, $97 million would have been outstanding under the credit facility as at September 30, 2011.

The Debentures have not been and will not be registered under the United States Securities Act of 1933, as amended or any state securities laws and may not be offered or sold in the United States.

This announcement does not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful.

Newalta provides cost-effective solutions to industrial customers to improve their environmental performance with a focus on recycling and recovery of products from industrial residues. These services are provided both through our network of 80 facilities across Canada and at our customers' facilities where we mobilize our equipment and people to process material directly onsite. Our customers operate in a broad range of industries including the oil and gas, petrochemical, refining, lead, manufacturing and mining industries. The company has delivered strong, profitable growth for over 15 years and has established a leadership position in the industry with talented people, efficient and safe operations, innovative approaches and high ethical standards. Newalta trades on the TSX as NAL. For more information, visit

This press release contains forward-looking information within the meaning of applicable Canadian securities laws. More particularly, this press release contains forward-looking information with respect to the use of the net proceeds of the Offering and the redemption of the convertible debentures. Although Newalta believes that the expectations reflected in this forward-looking information are reasonable, undue reliance should not be placed on it because Newalta can give no assurance that it will prove to be correct. Such information reflects the current views of Newalta's management with respect to future events and is subject to certain risks, uncertainties and assumptions.

The intended use of the net proceeds of the Offering by Newalta might change if the board of directors of Newalta determines that it would be in the best interests of Newalta to deploy the proceeds for some other purpose.

Contact Information

  • Newalta Corporation
    Anne M. Plasterer
    Executive Director, Investor Relations
    (403) 806-7019