Increased Facility Limit, Reduced Fee Structure and Improved Flexibility
/NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES/
TORONTO, April 6, 2015 /CNW/ - Crius Energy Trust (TSX:KWH.UN) ("Crius" or the "Trust") announces that it has expanded its credit facility with Macquarie Energy LLC. Key changes to the credit facility include:
- Increased overall exposure limit from $150 million to $250 million.
- Reduced fee structure through adjustments to the volumetric adder fee and elimination of certain other fees.
- Improved flexibility to procure energy from market counterparties and increased ability to enter into fixed price products for a term up to 60 months.
"We are pleased to expand our Macquarie credit facility in conjunction with the TriEagle Energy acquisition closed last week," stated Michael Fallquist, Chief Executive Officer of Crius Energy Trust. "Macquarie continues to support our growth as a key strategic partner and the enhancements to the credit facility, including increased size, reduced costs, and more flexibility, will allow us to continue to grow operations effectively."
The expanded facility came into effect on April 1, 2015 and the working capital sub-limit remains at $60 million with a base interest rate of LIBOR plus 5.5%. As of December 31, 2014, the availability under the facility was approximately $32 million.
About Crius Energy Trust
The Trust was established to provide investors with a distribution-producing investment through the acquisition of an approximate 26.8% ownership interest in Crius Energy. With approximately 800,000 residential customer equivalents, Crius Energy is a comprehensive energy solutions partner that provides electricity, natural gas and solar products to residential and commercial customers. Crius Energy connects with energy customers through an innovative family-of-brands strategy and multi-channel marketing approach. This unique combination creates multiple access points to a broad suite of energy products and services that make it easier for consumers to make informed decisions about their energy needs. Crius Energy sells energy products in 20 states and the District of Columbia with plans to continue expanding its geographic reach.
The 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 the Trust may be found on SEDAR at www.sedar.com or on the Trust's website at www.criusenergytrust.ca.
This press release contains "forward-looking statements" within the meaning of applicable Canadian securities laws. A statement is forward-looking when it uses what Crius Energy knows and expects today to make a statement about the future. Forward-looking statements may include words such as anticipate, assumption, believe, could, expect, goal, guidance, intend, may, objective, outlook, plan, seek, should, strive, target, will or other similar expressions. These statements relate to future events or future performance and reflect current assumptions, expectations and estimates of management regarding growth, results of operations, performance, business prospects and opportunities, Canadian economic environment and ability to attract and retain customers. Such forward-looking statements reflect current assumptions, expectations and estimates of management and are based on information currently available to Crius Energy as at the date of this press release. Forward-looking statements are subject to certain risks and uncertainties, and should not be read as guarantees of future performance or results and actual results may differ materially from the conclusion, forecast or projection stated in such forward-looking statements. These risks, uncertainties and other factors include but are not limited to, the Trust'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 unitholders. Such assumptions, expectations, estimates, risks and uncertainties are discussed under the headings "Risk Factors" (beginning on page 67) and "Special Notes to Reader – Forward-Looking Statements and Risk Factors" (beginning on page 9) in the Annual Information Form of the Trust dated March 25, 2015, and under the headings "Financial Instruments and Risk Management" (beginning on page 19) and "Forward-Looking Statements" (beginning on page 32) in the Management's Discussion and Analysis of the Trust dated March 25, 2015. Consequently, we cannot guarantee that any forward-looking statements will materialize. Readers should not place any undue reliance on such forward-looking statements. Crius Energy disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, other than as required by law.
SOURCE Crius Energy Trust
For further information: Michael Fallquist, Chief Executive Officer, [email protected], (203) 663-7545; Roop Bhullar, Chief Financial Officer, [email protected], (203) 883-9900; Craig MacPhail, TMX Equicom, [email protected], (416) 815-0700 ext. 290