This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Primary Energy Recycling Announces Completion Of Refinancing

OAK BROOK, IL, May 24, 2012 /PRNewswire/ - Primary Energy Recycling Corporation ("Primary Energy Recycling" or the "Company") (TSX: PRI), a clean energy company that generates revenue from capturing and recycling recoverable heat and byproduct fuels from industrial processes, today announced the closing of a US$110 million senior secured credit facility (the "New Credit Facility").

The proceeds of the New Credit Facility have been applied to fully retire the Company's outstanding US$36.4 million term loan, and will be used to fund the previously announced purchase of Atlantic Power Corporation's common membership interests in Primary Energy Recycling Holdings LLC ("PERH").

"The completion of this transaction facilitates the impending closure and funding of the Atlantic Power transaction, provides the Company greater financial flexibility, and lowers our borrowing cost by approximately 180 basis points," said John Prunkl, President and Chief Executive Officer of Primary Energy Recycling. "This series of transactions will increase shareholder ownership and allow us to move forward as an independently managed company."

The New Credit Facility will include three tranches of debt:
  • $25 million 5-year revolver at Libor plus 300 basis points with no Libor floor
  • $50 million 5-year term loan at Libor plus 300 basis points with no Libor floor
  • $35 million 7-year term loan at Libor plus 425 basis points with a 125 basis point Libor floor

The cost of borrowing (including up-front and original issue discount fees, and hedges) for the New Credit Facility is approximately 5.1% based on current Libor. Principal repayment is primarily achieved by periodic 50% cash flow sweeps plus modest quarterly amortization payments.  The revolver will be undrawn at close.

The existing senior debt that will be retired is at Libor plus 450 basis points with a 200 basis point Libor floor, and has a borrowing cost (including original issue discount fees) of approximately 6.9% based on current Libor.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 16,237.47 +179.12 1.12%
S&P 500 1,928.56 +14.71 0.77%
NASDAQ 4,681.9480 +45.8430 0.99%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs