CALGARY, ALBERTA (June 16, 2016) – Tervita Corporation (“Tervita” or the “Company”) announced it has reached an agreement with noteholders concerning its 11.875% senior subordinated notes due 2018 (the “Senior Subordinated Notes”).
On May 16, 2016, the Company announced it would not make the US$18.3 million interest payment (the “May Interest Payments”) in connection with the Senior Subordinated Notes and utilize a 30-day grace period (under its Senior Subordinated Notes) to engage in discussions regarding a potential recapitalization transaction with the holders of all of its long-term debt. The grace period has allowed Tervita to reach an agreement with approximately 96% of the holders of the Senior Subordinated Notes, subject to certain conditions, to forbear from declaring the principal amounts owing under the Senior Subordinated Notes due and payable until September 15, 2016. The Company has also entered into agreements with the agents and certain required lenders under its CDN $350 million revolving credit agreement and its US$244.6 million term loan agreement to waive any defaults under those agreements that may arise by not making the May Interest Payment.
These agreements give the Company additional time to work on a broader agreement with all of its long-term lenders to restructure or recapitalize its long-term debt.
The Company remains current with all of its suppliers, contractors, employees and other key partners. With its strong cash position and revolving line of credit, Tervita has ample liquidity to ensure that these obligations will continue to be met in a timely fashion.
Tervita has taken steps to improve its cost profile and undertaken a disciplined approach to managing and rationalizing its portfolio. The Company appreciates the support of its many stakeholders. Tervita’s underlying business operations are strong, we remain committed to our employees, our suppliers and our customers. We are being deliberate and thoughtful about this restructuring process and are confident that Tervita will continue to be your trusted partner for many years to come.
Tervita is a leading environmental solutions provider. Our integrated earth, water, waste and resource solutions deliver safe and efficient results through all phases of a project by minimizing impact, maximizing returns.™ 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.