Newalta Corporation Prices C$150 Million of 5.875% Senior Unsecured Debentures

CALGARY, ALBERTA--(Marketwired - March 25, 2014) -

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Newalta Corporation ("Newalta") (TSX:NAL) announced today that it has priced an aggregate principal amount of C$150 million of Senior Unsecured Series 3 Debentures, due 2021 (the "Debentures") via private placement (the "Offering").

The Debentures will bear interest at the rate of 5.875% per annum, payable semi-annually in arrears. Subject to the satisfaction of customary closing conditions, the Offering is expected to close on April 1, 2014.

Newalta intends to use the net proceeds of the Offering to redeem all of its $125 million outstanding Series 1, 7.625% senior unsecured debentures that mature on November 23, 2017 (the "Series 1 Debentures"), to reduce its senior indebtedness and for general corporate purposes.

"The successful completion of this refinancing and the redemption of our Series 1 debentures will further enhance our financial flexibility and strengthen our balance sheet by increasing the proportion of our long term debt, extending the average term of our debt outstanding and lowering our cost of debt," said Mike Borys, Executive Vice President and CFO of Newalta. "We remain well capitalized to deliver our growth plans and generate attractive returns to our shareholders."

Newalta expects the Debentures will receive a rating of BB 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 Series 1 Debentures and repay a portion of Newalta's outstanding indebtedness, on an as adjusted basis, $100 million would have been outstanding under the credit facility as at December 31, 2013.

The Offering is being underwritten by CIBC as Sole Bookrunner and Co-Lead Manager, along with Scotiabank as Co-Lead Manager and National Bank Financial, RBC Capital Markets and TD Securities as co-managers. The Offering 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 is North America's leading provider of innovative, engineered environmental solutions that enable customers to reduce disposal, enhance recycling and recover valuable resources from industrial residues. We serve customers onsite directly at their operations and through a network of 85 locations in Canada and the U.S. Our proven processes, portfolio of more than 250 operating permits and excellent record of safety make us the first choice provider of sustainability enhancing services to oil, natural gas, petrochemical, refining, lead, manufacturing and mining markets. With a skilled team of more than 2,200 people, two decade track record of profitable expansion and commitment to commercializing new solutions, Newalta is positioned for sustained future growth and improvement. Newalta trades on the TSX as NAL. For more information, visit www.newalta.com.

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.