ISSUES NOTICE TO REDEEM $62.5 MILLION OF ITS 9.00% SENIOR SECURED NOTES DUE 2027
NET DEBT BALANCE OF APPROXIMATELY $700 MILLION AT THE END OF 3Q/24, REFLECTING GROSS DEBT PAYMENT OF APPROXIMATELY $100 MILLION DURING THE THIRD QUARTER
CALGARY, Alberta, Oct. 1, 2024 (GLOBE NEWSWIRE) — Enerflex Ltd. effects EFXT (“Enerflex” or the “Company”) announced that it has given notice of partial redemption of its 9.00% Senior Secured Notes due 2027 (the “Notes”).
All amounts presented are in United States dollars (“USD”) unless otherwise indicated.
Partial redemption of senior secured notes
Enerflex has issued a partial redemption notice for $62.5 million (or 10% of the aggregate principal amount originally issued) of its Notes. The redemption will be completed on October 11, 2024 (the “Redemption Date”) at a redemption price of 103% of the principal amount of the notes being redeemed, plus accrued and unpaid interest up to, but excluding, the Redemption Date. rescue. Redemption of the Notes will be funded with available liquidity, including approximately $100 million in cash and cash equivalents as of September 30, 2024 and the undrawn portion of Enerflex's lower-cost $800 million revolving credit facility ( the “RCF”).
As of September 30, 2024, Enerflex's net debt1 The balance was approximately $700 million, reflecting gross debt repayment of approximately $100 million during the third quarter. Debt repayments during the third quarter were funded by cash provided by operating activities, including a reduction in net working capital and cash balances. Enerflex continues to expect net working capital movements to be a modest source of cash during the second half of 2024 and into fiscal 2024.
Management Comment
“The partial redemption of our Notes reflects continued efforts focused on reducing debt, reducing net financing costs and optimizing Enerflex's debt,” said Preet Dhindsa, Senior Vice President and Chief Financial Officer of Enerflex. “We are pleased with the results of these efforts to date and look forward to making further progress in the coming quarters. The recent extension and expansion of the RCF provides ample liquidity to support our global business and we remain on track to achieve our bank leverage target. Ratio net debt to adjusted EBITDA of 1.5x to 2.0x.”
Marc Rossiter, President and CEO of Enerflex, commented: “Since completing the acquisition of Exterran approximately two years ago, we have effectively integrated the two companies and are generating strong free cash flow. We see a visible path for Enerflex increase shareholder returns and we look forward to providing further updates to stakeholders in the coming months.”
Third quarter results
Enerflex plans to release its financial results and operating highlights for the three and nine months ended September 30, 2024, prior to market opening on Thursday, November 14, 2024. Results will be communicated via press release and will be available on the Company's website at www.enerflex.com and under the Company's electronic profile on SEDAR+ and EDGAR in www.sedarplus.ca and www.sec.gov/edgarrespectively.
Investors, analysts, members of the media, and other interested parties are invited to participate in a conference call and audio webcast on Thursday, November 14, 2024 at 8:00 am (MST), where members of the Senior management will discuss the situation of the Company. results. A question and answer period will follow.
To participate register at https://register.vevent.com/register/BI8422c47e8fb8449fb752892d24f2c1e6. Once registered, participants will receive dial-in numbers and a unique PIN to enter the call. The audio webcast of the conference call will be available on the Enerflex website at www.enerflex.com in the Investors section or can be accessed directly at https://edge.media-server.com/mmc/p/y2vuep4e/.
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1 The Company defines net debt as short- and long-term debt less cash and cash equivalents at the end of the period.
Notice Regarding Forward-Looking Information
This press release contains “forward-looking information” within the meaning of applicable Canadian securities laws and “forward-looking statements” (and together with “forward-looking information”, “forward-looking information and statements”) within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements and information. The use of any of the words “future”, “continue”, “estimate”, “expect”, “may”, “will”, “could”, “believe”, “predict”, “potential”, “target” and similar expressions are intended to identify forward-looking information and statements. In particular, this press release includes (without limitation) forward-looking information and statements relating to: the Redemption Date and expectations that the redemption of the Notes will be completed on the Redemption Date funded with available liquidity; expectations that net working capital movements will be a modest source of cash during the second half of 2024 and into fiscal 2024; the Company's ongoing efforts to increase shareholder returns and the momentum associated therewith, if any; The Company's ongoing efforts to reduce debt, reduce net financing costs and optimize its debt will continue to advance in the coming quarters; and expectations that the Company will release its financial results and operating highlights for the three and nine months ended September 30, 2024, prior to market opening on November 14, 2024.
All forward-looking information and statements contained in this press release are subject to important risks, uncertainties and assumptions that may affect Enerflex's operations, including, but not limited to: the impact of economic conditions; the markets in which Enerflex products and services are used; general industry conditions; changes and introduction of new government regulations, laws and income taxes; increased competition; insufficient funds to support capital investments; availability of qualified staff or management; political unrest and geopolitical conditions; and other factors, many of which are beyond Enerflex's control. As a result of the foregoing, Enerflex's actual results, performance or achievements could differ and such differences could be material from those expressed or implied in these statements, including, but not limited to: Enerflex's ability to achieve its intended objectives. benefits and synergies of the acquisition of Exterran Corporation and the timing and amount thereof; the interpretation and treatment of the transaction to acquire Exterran Corporation by applicable tax authorities; the ability to maintain desirable financial ratios; the ability to access various sources of debt and equity capital, generally, and on acceptable terms, in any case; the ability to utilize tax losses in the future; the ability to maintain relationships with partners; risks associated with technology and equipment, including potential cyber attacks; the occurrence and continuation of unexpected events such as pandemics, severe weather events, wars, terrorist threats and the instability resulting therefrom; risks associated with existing and potential future lawsuits, shareholder proposals and regulatory actions; and those factors mentioned under the heading “Risk factors” in: (i) Enerflex Annual Information Form for the year ended December 31, 2023, (ii) Enerflex management's discussion and analysis for the year ended December 31, 2023, and (iii) Circular Information from Enerflex Management dated March 15, 2024, each of the above documents being accessible in the Company's electronic profile on SEDAR+ and EDGAR at www.sedarplus.ca and www.sec.gov/edgarrespectively.
Readers are cautioned that the above list of assumptions and risk factors should not be construed as exhaustive. The forward-looking information and statements included in this press release are made as of the date of this press release and are based on information available to the Company at that time and, except as required by law, Enerflex disclaims any intention or obligation. update or revise any forward-looking information and statements, whether as a result of new information, future events or otherwise. This press release and its contents should not, under any circumstances, be construed as legal, tax or investment advice.
ABOUT ENERFLEX
Enerflex is a leading global integrated provider of energy infrastructure and energy transition solutions, implementing natural gas, low carbon and treated water solutions, from individual and modular products and services to integrated customized solutions. With more than 4,500 engineers, manufacturers, technicians and innovators, Enerflex is united by a shared vision: Transforming energy for a sustainable future. The Company remains committed to the future of natural gas and the critical role it plays, while focusing on sustainability offerings to support the energy transition and growing decarbonization efforts.
Enerflex's common shares trade on the Toronto Stock Exchange under the symbol “EFX” and on the New York Stock Exchange under the symbol “EFXT.” For more information about Enerflex, visit www.enerflex.com.
For investor and media inquiries, please contact:
Marc Rossiter
President and CEO
Email: MRossiter@enerflex.com
Preet S. Dhindsa
Senior Vice President and Chief Financial Officer
Email: PDhindsa@enerflex.com
Jeff Fetterly
Vice President of Corporate Development and Investor Relations
Email: JFetterly@enerflex.com
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