Newalta Corporation

Newalta Corporation

November 08, 2011 15:50 ET

Newalta Corporation Prices C$125 Million of 8 Year 7.75% Senior Unsecured Debentures, Proceeds to Redeem Convertible Debentures

CALGARY, ALBERTA--(Marketwire - Nov. 8, 2011) -


Newalta Corporation ("Newalta") (TSX:NAL) announced today that it has priced a private placement of Senior Unsecured Debentures, Series 2 due November 14, 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. Subject to the satisfaction of customary closing conditions, the Offering is expected to close on November 14, 2011.

The net proceeds of the Offering are intended to be used to redeem Newalta's 7.0% convertible unsecured subordinated debentures and for general corporate purposes.

"The successful completion of this refinancing will further enhance our financial flexibility and balance sheet by extending the average term of our debt outstanding," said Mike Borys, Senior Vice President and CFO of Newalta. "With a strong capital structure in place, we are well-positioned to meet the demand of future growth initiatives, while continuing to deliver attractive returns to our shareholders."

Newalta expects the Debentures will receive a rating of BB (low) from DBRS Limited and B1 from Moody's Investors Service, Inc. prior to or at closing of the Offering.

After applying the estimated net proceeds from the Offering to redeem the $115 million outstanding Convertible Debentures, on an as adjusted basis, $97 million would have been outstanding under the credit facility as at September 30, 2011.

The Offering is being underwritten by CIBC as Sole Bookrunner and Lead Manager, along with RBC Capital Markets, Scotia Capital Inc., National Bank Financial Inc. and TD Securities Inc. and is being conducted on a private-placement basis in each of the provinces of Canada pursuant to certain prospectus exemptions.

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

Certain information and statements contained in this press release constitute forward-looking information within the meaning of applicable Canadian securities laws. When used in this press release, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect", and similar expressions, as they relate to Newalta or its management, are intended to identify forward-looking information. In particular, forward-looking information included in this press release includes information with respect to: the anticipated benefits of the Offering on Newalta's financial position, the size and terms of the Offering, the use of proceeds realized therefrom by Newalta, the closing date of the Offering and the credit ratings of the Debentures.

Such information reflects the current views of Newalta's management with respect to future events and is subject to certain risks, uncertainties and assumptions, including, without limitation: market demand for the Debentures, Newalta's ability to meet the closing conditions of the Offering on the timelines it has planned, general market conditions for the industries that Newalta services, fluctuations in interest rates and exchange rates and such other risks or factors described from time to time in documents Newalta files with securities regulatory authorities. 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.

By its nature, forward-looking information involves numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other forward-looking information will not occur. Many other factors could also cause actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking information and readers are cautioned that the foregoing list of factors is not exhaustive. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. 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