CALGARY, ALBERTA–(Marketwired – Nov. 22, 2016) – Tervita Corporation and certain of its affiliates (“Tervita” or the “Company”) announced today that Tervita has reached a settlement (the “Settlement”) with certain holders (the “Settling Secured Noteholders”) of the 8.00% and 9.00% senior secured notes issued by Tervita due 2018 (collectively, the “Secured Notes,” and the holders of such Secured Notes, the “Secured Noteholders”) of the dispute (the “Prepayment Dispute”) as to whether an early call premium or similar payment is payable to the Secured Noteholders under Tervita’s Plan of Arrangement under the Canada Business Corporations Act (the “Plan of Arrangement”). Secured Noteholders holding approximately 85% of the Secured Notes have agreed to the Settlement.
Pursuant to the Settlement, each Secured Noteholder will receive its pro rata share of the settlement amount of approximately US$8.6 million, in the case of the 8.00% senior secured notes, and approximately $3.0 million, in the case of the 9.00% senior secured notes (the “Settled Prepayment Amount”), in full and final satisfaction, compromise, settlement, release, and discharge of the Prepayment Dispute. The Settled Prepayment Amount will be distributed on the effective date of Tervita’s previously announced Recapitalization (the “Recapitalization”) as follows:
- in respect of certain Secured Notes held as of September 14, 2016 by sponsors of the Plan of Arrangement, in the form of a demand note that will be convertible into new preferred shares of Tervita at the option of the holder; and
- otherwise in the form of either cash or, at the Secured Noteholder’s election, new preferred shares of Tervita.
Pursuant to the Settlement, the Settling Secured Noteholders have also agreed to support the Plan of Arrangement. The Settlement will not prejudice the rights of Secured Noteholders that are neither sponsors of the Plan of Arrangement nor Settling Secured Noteholders to pursue any claims relating to the Prepayment Dispute. Pursuant to the Plan of Arrangement, Secured Noteholders will also be repaid all principal and accrued interest to the effective date under the Plan of Arrangement.
On November 22, 2016, Tervita also announced that it received an Order from the Alberta Court of Queen’s Bench approving the Settlement.
Tervita also announced that it has filed an Information Supplement to the Management Information Circular with respect to the Plan of Arrangement and the Recapitalization (the “Information Supplement”). The Information Supplement is available on Tervita’s noteholder IntraLinks website and through Kingsdale Shareholder Services by calling at 1-866-851-2484 (toll-free within Canada or the United States) or 1-416-867-2272 (for calls outside of Canada and the United States) or by email at [email protected].
Tervita has operated in Canada for almost 40 years and is a leading environmental solutions provider. Our integrated earth, water, waste and resource solutions are designed to deliver safe and efficient results through all phases of a project by minimizing environmental impacts. Our dedicated employees are trusted sustainability partners to oil and gas, construction, mining, government and communities. Safety is our highest priority: it influences our actions and shapes our culture.
Additional information about Tervita is available at www.tervita.com.