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CIBC, Others Renew Just Energy ’s Revolving Credit Facility

October 03, 2013, 07:08 AM
Filed Under: Energy

Just Energy Group, Inc., a competitive retailer of natural gas and electricity, reached agreement with its syndicate of lenders to renew and extend its revolving credit facility for a period of two years from the closing date of October 2, 2013. Based on projected operating requirements, the line has been set at $300 million with a Just Energy option to draw up to $340 million between closing and February 28, 2014. The pricing of the renewed facility is the same as that of the previous extension.

The agreement has been reached with a syndicate of 7 banks led by Canadian Imperial Bank of Commerce and including Royal Bank of Canada, National Bank of Canada, The Toronto Dominion Bank, The Bank of Nova Scotia, Alberta Treasury Branches and HSBC Bank Canada.

Commenting on the renewal, CEO Ken Hartwick stated: "We have made it a priority to reduce our overall level of indebtedness and are pleased to complete another step in our efforts to strengthen our balance sheet. When we announced our first quarter results, we noted that our projected need for our revolving credit line would decrease based on the improving cash flow of our business. Based on this, we have reduced our line to $340 million and will further reduce it to $300 million by February 28, 2014. We remain focused on executing on our long-term growth strategy, which includes enhancing market share in North America, continued expansion in the U.K. market and increasing customer value through product bundling."

Executive Chair Rebecca MacDonald added: "I am very pleased with the continued confidence in Just Energy shown by our lending syndicate in renewing our revolving facility for an additional two year term. We have a longstanding relationship with our bankers and we look forward to working with them to support the future growth of our Company. This renewal reflects one step in the Just Energy's plan to reduce its overall debt level. The Company is reviewing a number of options for further debt restructuring and reduction."

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