CALGARY, ALBERTA--(Marketwired - June 16, 2016) - Tervita Corporation ("Tervita" or the "Company") announced it has reached an agreement with noteholders concerning its 11.875% senior subordinated notes due 2018 (the "Senior Subordinated Notes").
On May 16, 2016, the Company announced it would not make the US$18.3 million interest payment (the "May Interest Payments") in connection with the Senior Subordinated Notes and utilize a 30-day grace period (under its Senior Subordinated Notes) to engage in discussions regarding a potential recapitalization transaction with the holders of all of its long-term debt. The grace period has allowed Tervita to reach an agreement with approximately 96% of the holders of the Senior Subordinated Notes, subject to certain conditions, to forbear from declaring the principal amounts owing under the Senior Subordinated Notes due and payable until September 15, 2016. The Company has also entered into agreements with the agents and certain required lenders under its CDN $350 million revolving credit agreement and its US$244.6 million term loan agreement to waive any defaults under those agreements that may arise by not making the May Interest Payment.
These agreements give the Company additional time to work on a broader agreement with all of its long-term lenders to restructure or recapitalize its long-term debt.
The Company remains current with all of its suppliers, contractors, employees and other key partners. With its strong cash position and revolving line of credit, Tervita has ample liquidity to ensure that these obligations will continue to be met in a timely fashion.
Tervita has taken steps to improve its cost profile and undertaken a disciplined approach to managing and rationalizing its portfolio. The Company appreciates the support of its many stakeholders. Tervita's underlying business operations are strong, we remain committed to our employees, our suppliers and our customers. We are being deliberate and thoughtful about this restructuring process and are confident that Tervita will continue to be your trusted partner for many years to come.
About Tervita
Tervita is a leading environmental solutions provider. Our integrated earth, water, waste and resource solutions deliver safe and efficient results through all phases of a project by minimizing impact, maximizing returns.™ Our dedicated employees are trusted sustainability partners to oil and gas, construction, mining, government and communities. Safety is our highest priority: it influences our actions and shapes our culture. For more information visit Tervita.com.
Legal Advisories
Additional information about the Company is available at www.tervita.com.
Reader Advisory Regarding Forward-Looking Statements
This news release contains certain "forward-looking statements" or "forward-looking information" (collectively referred to herein as "forward-looking statements"). Such forward-looking statements include, without limitation, forecasts, estimates, expectations and objectives for future operations that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or are events or conditions that "will", "would", "may", "could" or "should" occur or be achieved. This news release contains forward-looking statements, pertaining to, among other things, the following: the ability of the Company to reach an agreement with its lenders to restructure or recapitalize its long-term debt, the Company's liquidity and ability to meet payment obligations and the timing of meeting such payment obligations, the Company's intentions for the future of its business operations and long-term strategy and the Company's commitment to its employees, suppliers and customers. Statements regarding future growth, capital expenditures and development plans are subject to all of the risks and uncertainties that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. These risks include, but are not limited to, general economic conditions, inflation or lack of availability of goods and services, environmental risks, customer risks, regulatory changes and certain other known and unknown risks.
Although Tervita believes that the material factors, expectations and assumptions expressed in such forward-looking statements are reasonable based on information available to it on the date such statements were made, no assurances can be given as to future results, levels of activity and achievements and such statements are not guarantees of future performance. Tervita's actual results may differ materially from those expressed or implied in forward-looking statements and readers should not place undue importance or reliance on the forward-looking statements. Statements including forward-looking statements are made as of the date they are given and, except as required by applicable laws, Tervita disclaims any intention or obligation to publically update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.
Contact Information:
Vice President, Finance & Treasurer
rbrimble@tervita.com
(403) 234-2097