OAK BROOK, IL, Nov. 30 /CNW/ - Primary Energy Recycling Corporation (TSX:
PRI.UN) is pleased to announce today the successful completion of the Second
Amendment and Limited Waiver to its senior debt Credit Agreement which waives
the previously announced covenant default. The immediate and positive effect
of the amendment is that the Company will pay distributions to holders of
Separate Subordinated Notes and enhanced income securities ("EISs"). Further,
the amendment permanently increases covenant thresholds allowing for improved
operating flexibility going forward as well as modifies certain other Credit
Agreement terms. "We very much appreciate the cooperation and support of the
lenders in working with us to craft an amendment that effectively balances the
interests of both the investors and lenders. Most importantly, I am very
pleased that distributions to unit holders will resume in December. This is a
big step forward to restoring our unit value. We have more work ahead and our
team is driving hard to prove we can deliver excellent unit value while also
reducing emissions and improving the environment" said Mr. John Prunkl,
President of Primary Energy Ventures LLC, the Manager of the Company.
Mr. Michel Lavigne, Chair of the Board of Directors said "The Board has
reinstated the Company's Cdn$ 0.80 annualized distribution and intends to pay
a Cdn$ 0.0667 per EIS cash distribution on December 31, 2007. We are pleased
to be able to thank our unit holders by resuming their distributions. This is
good for the business and for its investors."
The Board also declared all interest currently due and payable to holders
of the Separate Subordinated Notes and the Subordinated Notes that form part
of each EIS will be paid on December 18, 2007 to holders of record as of
December 12, 2007. Approximately Cdn$ 0.0514 will be paid on each Cdn$
2.5 subordinated note.
The amendment to the Harbor Coal contract remains in the approval process
with the site host. While the approval of the proposed amendment is currently
not finalized, the Company remains optimistic it will be completed in the near
term. However, if the amendment to the Harbor Coal contract is not signed by
February 29, 2008, under the amended terms of the Credit Agreement there are
circumstances whereby the Company could be subject to increased interest
expense as well as the potential for cash sweeps to lenders. This could
potentially impact the Company's distribution policy.
The text of the amendment will be filed for posting at www.sedar.com and
the Company's website; www.primaryenergyrecycling.com.
Each EIS consists of one common share of the Company (a "Common Share")
and one 11.75% subordinated note of the Company having a par value of
Cdn$ 2.50 (the "Subordinated Note"). The EISs trade on the Toronto Stock
Exchange under the symbol PRI.UN.
The Company owns a majority interest in Primary Energy Recycling Holdings
LLC ("Primary Energy"). Primary Energy, headquartered in Oak Brook, Illinois,
indirectly owns and operates four recycled energy projects and a 50% interest
in a pulverized coal facility (collectively, the "Projects"). The Projects
have a combined electrical generating capacity of 283 megawatts and a combined
steam generating capacity of 1.8 MMlbs/hour. Primary Energy creates value for
its customers by capturing and recycling waste energy from industrial and
electric generation processes and converting it into reliable and economical
electricity and thermal energy for its customers' use. For more information,
please visit us at www.primaryenergyrecycling.com.
When used in this news release, the words "anticipate", "expect",
"project", "believe", "estimate", "forecast" and similar expressions are
intended to identify forward-looking statements. Such statements are subject
to certain risks, uncertainties and assumptions pertaining, but not limited,
to operating performance, regulatory parameters, weather and economic
conditions and the factors discussed in the Company's public filings available
on SEDAR at www.sedar.com. These forward-looking statements are made as of the
date of this press release and the Company assumes no obligation to update or
revise them to reflect new events or circumstances.
For further information:
For further information: V. Michael Alverson, Chief Financial Officer,
Primary Energy Ventures, (630) 371-0639, firstname.lastname@example.org