Enerflex Ltd. Broadcasts Partial Redemption of Senior Secured Notes, Additional Debt Discount and Timing of Third Quarter Outcomes

Article content material

ISSUES NOTICE TO REDEEM $62.5 MILLION OF ITS 9.00% SENIOR SECURED NOTES DUE 2027

NET DEBT BALANCE OF APPROXIMATELY $700 MILLION AT THE END OF Q3/24, REFLECTING GROSS DEBT REPAYMENT OF APPROXIMATELY $100 MILLION DURING THE THIRD QUARTER

CALGARY, Alberta, Oct. 01, 2024 (GLOBE NEWSWIRE) — Enerflex Ltd. (TSX: EFX) (NYSE: EFXT) (“Enerflex” or the “Firm”) introduced that it has delivered a discover of partial redemption of its 9.00% Senior Secured Notes due 2027 (the “Notes”).

All quantities introduced are in U.S. Greenback (“USD”) until in any other case acknowledged.

Article content material

Partial Redemption of Senior Secured Notes

Enerflex has issued a discover of partial redemption for $62.5 million (or 10% of the combination principal quantity initially issued) of its Notes. The redemption might be accomplished on October 11, 2024 (the “Redemption Date”) at a redemption value of 103% of the principal quantity of the notes being redeemed, plus accrued and unpaid curiosity as much as, however excluding, the Redemption Date. The redemption of the Notes might be funded with obtainable liquidity, which incorporates roughly $100 million of money and money equivalents as at September 30, 2024 and the undrawn portion of Enerflex’s decrease value $800 million revolving credit score facility (the “RCF”).

As at September 30, 2024, Enerflex’s internet debt¹ stability was roughly $700 million, which displays gross debt compensation of roughly $100 million in the course of the third quarter. Debt compensation in the course of the third quarter was funded by money offered by working actions, together with a discount in internet working capital, and money balances. Enerflex continues to count on internet working capital actions might be a modest supply of money in the course of the second half of 2024 and for fiscal 2024.

Article content material

Article content material

Administration Commentary

“The partial redemption of our Notes displays on-going targeted efforts to scale back debt, decrease internet finance prices, and optimize Enerflex’s debt stack,” mentioned Preet Dhindsa, Enerflex’s Senior Vice President and Chief Monetary Officer. “We’re happy with the outcomes of those efforts to this point and count on to make additional progress in coming quarters. The latest extension and enlargement of the RCF gives ample liquidity to assist our world enterprise and we stay on observe to achieve our goal leverage bank-adjusted internet debt-to-EBITDA ratio of 1.5x to 2.0x.”

Marc Rossiter, President and Chief Government Officer of Enerflex commented, “Since finishing the acquisition of Exterran roughly two years in the past, we now have successfully built-in the 2 corporations and are producing strong free money circulate. We see a visual path for Enerflex to extend shareholder returns and stay up for offering additional updates to stakeholders in coming months.”

Third Quarter Outcomes

Enerflex plans to launch its monetary outcomes and working highlights for the three and 9 months ended September 30, 2024, previous to market open on Thursday, November 14, 2024. Outcomes might be communicated by information launch and might be obtainable on the Firm’s web site at www.enerflex.com and beneath the digital profile of the Firm on SEDAR+ and EDGAR at www.sedarplus.ca and www.sec.gov/edgar, respectively.

Article content material

Buyers, analysts, members of the media, and different events, are invited to take part in a convention name and audio webcast on Thursday, November 14, 2024 at 8:00 a.m. (MST), the place members of senior administration will focus on the Firm’s outcomes. A matter-and-answer interval will observe.

To take part, register at https://register.vevent.com/register/BI8422c47e8fb8449fb752892d24f2c1e6. As soon as registered, contributors will obtain the dial-in numbers and a novel PIN to enter the decision. The audio webcast of the convention name might be obtainable on the Enerflex web site at www.enerflex.com beneath the Buyers part or may be accessed straight at https://edge.media-server.com/mmc/p/y2vuep4e/.

_______________
¹ The Firm defines internet debt as short- and long-term debt much less money and money equivalents at interval finish.

Advisory Concerning Ahead-looking Info

This information launch incorporates “forward-looking data” throughout the which means of relevant Canadian securities legal guidelines and “forward-looking statements” (and along with “forward-looking data”, “forward-looking data and statements”) throughout the which means of the secure harbor provisions of the US Non-public Securities Litigation Reform Act of 1995. All statements apart from statements of historic truth are forward-looking data and statements. The usage of any of the phrases “future”, “proceed”, “estimate”, “count on”, “might”, “will”, “might”, “imagine”, “predict”, “potential”, “goal”, and related expressions, are supposed to establish forward-looking data and statements. Particularly, this information launch consists of (with out limitation) forward-looking data and statements pertaining to: the Redemption Date and expectations that the redemption of the Notes might be accomplished on the Redemption Date funded with obtainable liquidity; expectations that internet working capital actions might be a modest supply of money in the course of the second half of 2024 and for fiscal 2024; the on-going efforts by the Firm to extend shareholder returns and the timing related therewith, if in any respect; continued efforts by the Firm to scale back debt, decrease internet finance prices, and optimize its debt stack, will proceed to progress within the coming quarters; and the expectations that the Firm will launch its monetary outcomes and working highlights for the three and 9 months ended September 30, 2024, previous to market open on November 14, 2024.

Article content material

All forward-looking data and statements on this information launch are topic to essential dangers, uncertainties, and assumptions, which can have an effect on Enerflex’s operations, together with, with out limitation: the impression of financial situations; the markets during which Enerflex’s services are used; common business situations; adjustments to, and introduction of recent, governmental laws, legal guidelines, and earnings taxes; elevated competitors; inadequate funds to assist capital investments; availability of certified personnel or administration; political unrest and geopolitical situations; and different elements, lots of that are past the management of Enerflex. On account of the foregoing, precise outcomes, efficiency, or achievements of Enerflex might differ and such variations may very well be materials from these expressed in, or implied by, these statements, together with however not restricted to: the power of Enerflex to appreciate the anticipated advantages of, and synergies from, the acquisition of Exterran Company and the timing and quantum thereof; the interpretation and remedy of the transaction to amass Exterran Company by relevant tax authorities; the power to take care of fascinating monetary ratios; the power to entry varied sources of debt and fairness capital, typically, and on acceptable phrases, if in any respect; the power to make the most of tax losses sooner or later; the power to take care of relationships with companions; dangers related to know-how and tools, together with potential cyberattacks; the incidence and continuation of sudden occasions resembling pandemics, extreme climate occasions, warfare, terrorist threats, and the instability ensuing therefrom; dangers related to present and potential future lawsuits, shareholder proposals, and regulatory actions; and people elements referred to beneath the heading “Threat Components” in: (i) Enerflex’s Annual Info Kind for the 12 months ended December 31, 2023, (ii) Enerflex’s administration’s dialogue and evaluation for the 12 months ended December 31, 2023, and (iii) Enerflex’s Administration Info Round dated March 15, 2024, every of the foregoing paperwork being accessible beneath the digital profile of the Firm on SEDAR+ and EDGAR at www.sedarplus.ca and www.sec.gov/edgar, respectively.

Article content material

Readers are cautioned that the foregoing record of assumptions and danger elements shouldn’t be construed as exhaustive. The forward-looking data and statements included on this information launch are made as of the date of this information launch and are based mostly on the knowledge obtainable to the Firm at such time and, apart from as required by regulation, Enerflex disclaims any intention or obligation to replace or revise any forward-looking data and statements, whether or not because of new data, future occasions, or in any other case. This information launch and its contents shouldn’t be construed, beneath any circumstances, as funding, tax, or authorized recommendation.

ABOUT ENERFLEX
Enerflex is a premier built-in world supplier of power infrastructure and power transition options, deploying pure fuel, low-carbon, and handled water options – from particular person, modularized services to built-in customized options. With over 4,500 engineers, producers, technicians, and innovators, Enerflex is sure collectively by a shared imaginative and prescient: Remodeling Vitality for a Sustainable Future. The Firm stays dedicated to the way forward for pure fuel and the vital function it performs, whereas targeted on sustainability choices to assist the power transition and rising decarbonization efforts.

Enerflex’s widespread shares commerce on the Toronto Inventory Alternate beneath the image “EFX” and on the New York Inventory Alternate beneath the image “EFXT”. For extra details about Enerflex, go to www.enerflex.com.

For investor and media enquiries, contact:

Marc Rossiter
President and Chief Government Officer
E-mail: MRossiter@enerflex.com

Preet S. Dhindsa
Senior Vice President and Chief Monetary Officer
E-mail: PDhindsa@enerflex.com

Jeff Fetterly
Vice President, Company Growth and Investor Relations
E-mail: JFetterly@enerflex.com

Article content material