Newalta Closes $46 Million Equity Financing

    
    /NOT FOR DISTRIBUTION TO THE U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION
    IN THE UNITED STATES/

    TSX Trading Symbol: NAL
    

CALGARY, Oct. 27 /CNW/ - Newalta ("Newalta") (TSX:NAL) announced today that it has completed its previously disclosed equity financing. The underwriting syndicate exercised the full over-allotment option resulting in the issuance by Newalta of 6,037,500 common shares for gross proceeds of approximately $46 million. The underwriting syndicate was co-led by CIBC World Markets Inc. and Canaccord Capital Corporation and included RBC Dominion Securities Inc., BMO Nesbitt Burns Inc. and National Bank Financial Inc.

After applying the net proceeds of approximately $44 million from the Offering to repay a portion of the outstanding indebtedness of Newalta Corporation, approximately $207 million of senior long-term debt is outstanding under the Credit Facility. The Credit Facility is available for ongoing working capital and general corporate purposes including funding of growth capital expenditures.

Newalta also recently received confirmation from the Alberta Energy Resources Conservation Board ("ERCB") that $25 million of letters of credit have been approved and are eligible to be returned to Newalta. Newalta anticipates the return of $22 million of letters of credit in the third quarter for covenant reporting purposes, with the balance of $3 million being returned in the fourth quarter. The aggregate dollar amount of all outstanding letters of credit is not categorized in the financial statements as long-term debt; however, the issued letters of credit were included in the definition of funded debt for covenant purposes and had the effect of reducing the amount available under the Credit Facility.

Including the current financing and the anticipated return of $22 million of letters of credit, Newalta's funded debt will be reduced to approximately $230 million, resulting in $120 million capacity under the Credit Facility.

The securities offered have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons except in certain transactions exempt from the registration requirements of the U.S. Securities Act. This news release does not constitute an offer to sell or the solicitation of any offer to buy nor will there be any sale of securities in any province, state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under applicable securities laws.

Newalta Inc. is Canada's largest industrial waste management and environmental services provider and focuses on maximizing the value inherent in industrial waste through the recovery of saleable products and recycling. It also provides environmentally sound disposal of solid, non-hazardous industrial waste. With talented people and a national network of facilities, Newalta serves customers in the automotive, construction, forestry, lead, manufacturing, mining, oil and gas, petrochemical, pulp and paper, refining, steel and transportation service industries. Providing solid investor returns, exceptional customer service, safe operations and environmental stewardship has enabled Newalta to expand into new service sectors and geographic markets. Newalta Inc. trades on the TSX as NAL. For more information, visit www.newalta.com.

This press release contains forward-looking statements. More particularly, this press release contains statements concerning the anticipated capacity of the Credit Facility to fund customer-driven capital projects. Although Newalta believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them because Newalta can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties.

The forward-looking statements contained in this press release are made as of the date hereof and Newalta undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

SOURCE Newalta Corporation

For further information: For further information: Anne M. MacMicken, Executive Director, Investor Relations, (403) 806-7019


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