/NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE
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
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 Trust
For further information:
Chief Executive Officer
Chief Financial Officer
(416) 815-0700 ext. 290