Newalta Corporation
TSX : NAL

Newalta Corporation

November 23, 2010 10:59 ET

Newalta Corporation Closes Private Placement of C$125 Million Senior Unsecured Debentures

CALGARY, ALBERTA--(Marketwire - Nov. 23, 2010) -

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

Newalta Corporation ("Newalta") (TSX:NAL) today announced the closing of its previously announced private placement (the "Offering") of C$125 million Senior Unsecured Debentures, Series 1 with a 7 year term, maturing on November 23, 2017, bearing interest at the rate of 7.625% per annum (the "Debentures"). 

Proceeds of the Offering will be used to reduce senior indebtedness under Newalta's credit facility and for general corporate purposes. After applying the estimated net proceeds of approximately $122 million from the Offering to repay a portion of the outstanding indebtedness, on an as adjusted basis, $70.3 million would have been outstanding under the credit facility as at September 30, 2010. 

CIBC World Markets Inc. acted as Sole Bookrunner and Lead Manager along with a syndicate of underwriters for the Offering that included RBC Capital Markets, Scotia Capital, National Bank Financial and TD Securities.

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 www.newalta.com.

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. 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.

Furthermore, the forward-looking information contained in this press release is made as of the date hereof and is expressly qualified by this cautionary statement. Unless otherwise required by law, Newalta does not intend, or assume any obligation, to publicly revise any forward-looking information to reflect subsequent events or circumstances.

Contact Information

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