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Canexus Corporation Announces Closing of $75,000,000 Convertible Unsecured Subordinated Debenture Financing

June 6, 2014



ENP Newswire - 06 June 2014

Release date- 03062014 - CALGARY, ALBERTA - Canexus Corporation (TSX:CUS) is pleased to announce that it has closed its previously announced offering of $75,000,000 of 6.50% Convertible Unsecured Subordinated Series VI Debentures on a bought deal basis.

The Offering was underwritten by a syndicate of underwriters led by CIBC, National Bank Financial Inc., Scotiabank and TD Securities Inc.Canexus has also granted the underwriters an over-allotment option (the 'Over-Allotment Option') to purchase up to an additional aggregate principal amount of Debentures equal to the lesser of the underwriters' over-allocation position and $11,250,000 at the same price, exercisable in whole or in part, at the sole discretion of the underwriters, until 30 days following the closing of the Offering, to cover the underwriters' over-allocation position.

If the Over-Allotment Option is exercised in full, the maximum gross proceeds raised pursuant to the Offering will be $86,250,000.

Canexus intends to use the net proceeds of the Offering initially to repay indebtedness under its credit facility which will then be available to be drawn as required to fund the repayment of the 5.75% Series III Convertible Unsecured Subordinated Debentures ('Series III Debentures') maturing December 31, 2015 (but redeemable at par after December 31, 2014, plus accrued and unpaid interest), and for working capital and/or general corporate purposes.

About Canexus

Canexus produces sodium chlorate and chlor-alkali products largely for the pulp and paper and water treatment industries. Our four plants in Canada and two at one site in Brazil are reliable, low-cost, strategically located facilities that capitalize on competitive electricity costs and transportation infrastructure to minimize production and delivery costs.

Canexus also provides fee-for-service hydrocarbon trans loading services to the oil and gas industry from its terminal at Bruderheim, Alberta. Canexus targets opportunities to maximize shareholder returns and delivers high-quality products to its customers and is committed to Responsible Care through safe operating practices.

Canexus common shares (CUS) and debentures (Series III - CUS.DB.A; Series IV - CUS.DB.B; Series V - CUS.DB.C, Series VI - CUS.DB.D) trade on the Toronto Stock Exchange. More information about Canexus is available at www.canexus.ca.

Forward-Looking Statements

This press release contains forward-looking statements. More particularly, this press release contains statements concerning the anticipated use of the anticipated net proceeds of the Offering.

By their nature, forward-looking statements involve a variety of assumptions, known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in such forward-looking statements including market and general economic conditions, future costs, treatment under governmental regulatory, tax and environmental regimes and the other risks and uncertainties detailed under 'Risk Factors' in the Corporation's Annual Information Form filed on the Corporation's SEDAR profile at www.sedar.com.

Although Canexus believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them because Canexus 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 Canexus undertakes no obligations 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.

Contact:

Canexus Corporation

Richard McLellan

Tel: (403) 571-7300

Lavonne Zdunich

Investor Relations

Tel: (403) 571-7356


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Source: ENP Newswire


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