Crius Energy Trust Expands Working Capital Facility
/NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES/
More than Doubles Working Capital Available to the Trust
TORONTO, Feb. 10, 2014 /CNW/ - Crius Energy Trust (TSX:KWH.UN) ("Crius" or the "Trust") announces that it has expanded its working capital facility with Macquarie Energy LLC from $25 million to $60 million, with the base interest rate remaining unchanged at LIBOR plus 5.5%. On a pro-forma basis as at September 30, 2013, the Trust's cash and cash availability would have been $64.3 million, up from $33.9 million.
"We are pleased to have more than doubled the working capital available to our business and increased our financial flexibility through the expansion of this facility," said Michael Fallquist, President and CEO of Crius Energy Trust. "The expansion significantly improves the financial capacity of the company and is particularly timely given the current conditions in the retail energy market. This will allow us to take advantage of opportunities that arise in the market while also supporting distributions to our unitholders."
Other material changes to the credit facility with Macquarie Energy include a decrease in the unused portion of the overall exposure limit from $200 million to $150 million and an incremental interest rate of 1.25% applied to borrowings above a certain threshold. Additionally, Macquarie Energy will be issued 750,000 warrants in the Trust with a strike price of C$6.23 per unit and a term of five years, with the warrants being exercisable over a four year schedule.
"The reduced overall exposure limit of the facility still allows our business to more than double in size," added Mr. Fallquist. "The Trust and Macquarie Energy are committed to ensuring that the overall exposure limit is sufficient to support our continued growth and financing requirements. The parties have agreed to commence a syndication process soon after close to meet these needs and broaden the group of financing counterparties we work with."
About Crius Energy Trust
Crius Energy has a 26.8% ownership interest in Crius Energy LLC. With approximately 610,000 residential customer equivalents, Crius Energy LLC is one of the largest independent energy retailers operating in the United States, serves residential and small to medium-size commercial customers and markets its products through a variety of sales channels and brand names. Crius Energy LLC currently sells electricity in 11 states and the District of Columbia, natural gas in seven states and the District of Columbia and solar energy products and services in six states.
Crius Energy Trust intends to qualify as a "mutual fund trust" under the Income Tax Act (Canada) (the "Tax Act"). The Trust will not be a "SIFT trust" (as defined in the Tax Act), provided that the Trust complies at all times with its investment restriction which precludes the Trust from holding any "non-portfolio property" (as defined in the Tax Act). Material information pertaining to Crius Energy may be found on www.sedar.com or www.criusenergytrust.ca.
About Macquarie Group
Macquarie Energy LLC is a wholly owned subsidiary of Macquarie Group (Macquarie), a global provider of banking, financial, advisory, investment and funds management services. Macquarie's main business focus is making returns by providing a diversified range of services to clients. Founded in 1969, Macquarie operates in more than 70 office locations in 28 countries and employs more than 13,600 people. Assets under management total approximately $362 billion at March 31, 2013. For more information, visit www.macquarie.com.
This news release contains forward-looking information that involves substantial known and unknown risks and uncertainties, most of which are beyond the control of Crius Energy, including, without limitation, those listed under "Risk Factors" and "Forward-Looking Statements" in Crius Energy's Annual Information Form dated March 28, 2013 (collectively, "forward-looking information"). Forward-looking information in this news release includes, but is not limited to, Crius Energy's objectives and status as a mutual fund trust and not a SIFT trust, results of operations, financial position or cash flows, customer revenues and margins, customer additions and renewals, customer attrition, customer consumption levels, general and administrative expenses, treatment under governmental regulatory regimes, distributable cash and Crius Energy's expectations and estimates regarding the payment of distributions to unit holders. Crius Energy cautions investors of Crius Energy's securities about important factors that could cause Crius Energy's actual results to differ materially from those projected in any forward-looking statements included in this news release. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance are not historical facts and may be forward-looking and may involve estimates, assumptions and uncertainties which could cause actual results or outcomes to differ materially from those expressed in such forward-looking statements. No assurance can be given that the expectations set out in this news release will prove to be correct and accordingly, prospective investors should not place undue reliance on these forward-looking statements. These statements speak only as of the date of this news release and Crius Energy does not assume any obligation to update or revise them to reflect new events or circumstances.
SOURCE Crius Energy TrustFor further information:
Chief Executive Officer
Chief Financial Officer
(416) 815-0700 ext. 290