Offering will fund bank debt repayment and general corporate purposes
By Devika Patel
Knoxville, Tenn., March 31 – Newalta Corp. said it will raise C$23.42 million in a private placement of stock.
The company will sell 13,778,000 common shares at C$1.70 per share. The price per share is a 5.03% discount to the March 30 closing share price of C$1.79.
The company also plans a C$26,581,200 public offering of stock at the same price with a C$3,987,180 greenshoe. That sale of 15,636,000 shares will be conducted by a syndicate of underwriters led by Scotiabank.
Proceeds from both sales will be used to reduce bank debt and for general corporate purposes.
“We expect that the proceeds from these offerings will further enhance our financial position and ability to withstand a prolonged market downturn. These financings are anticipated to increase our financial flexibility and significantly increase the existing room under our credit facility covenants,” president and chief executive officer John Barkhouse said in a press release.
“While continuing to optimize our balance sheet, we will be able to focus our attention on running the business and driving revenue growth opportunities, thereby better positioning us to realize torque upon market recovery.
“Our long-term debt structure is designed to maximize liquidity and flexibility. After giving effect to these financings as at Feb. 29, 2016, approximately 85% of our debt will be comprised of senior unsecured term debt with fixed interest rates and maturity dates of November 2019 and April 2021, respectively.
“These laddered maturity dates assist with our debt management without having a significant maturity burden in any given year.”
Newalta is a Calgary, Alta.-based industrial waste management and environmental services company.
| Issuer: | Newalta Corp.
|
| Issue: | Common shares
|
| Amount: | C$23,422,600
|
| Shares: | 13,778,000
|
| Price: | C$1.70
|
| Warrants: | No
|
| Pricing date: | March 31
|
| Stock symbol: | Toronto: NAL
|
| Stock price: | C$1.79 at close March 30
|
| Market capitalization: | C$109.1 million
|
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