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Just Energy completes $105-million financing with CPPIB
2012-12-12 07:17 MT - News Release
Ms. Rebecca MacDonald reports
JUST ENERGY GROUP INC. ANNOUNCES $105 MILLION INVESTMENT BY CPPIB CREDIT INVESTMENTS INC.
Just Energy Group Inc. has closed an investment with CPPIB Credit Investments Inc., a wholly owned subsidiary of Canada Pension Plan Investment Board (CPPIB). The investment is in the form of C$105 million of unsecured, five and a half year term notes with a 9.75% coupon (the "Notes"), issued pursuant to a trust indenture with Computershare Trust Company of Canada (the "Indenture").
Just Energy intends to use the net proceeds from the financing to reduce its drawings on its working capital line, fund future growth and for general corporate purposes. CIBC World Markets Inc. and National Bank Financial Inc. acted as agents on the transaction.
The key terms of the Notes are as follows:
Principal: C$105 million investment Coupon: 9.75% Pricing: Issued at par Ranking: Senior unsecured indebtedness Term: Five and a half years Prepayment: Make whole and change of control provisions as described in the Indenture Covenants: Certain customary covenants with respect to additional debt incurrence, dividends, asset sales and other usual covenants to be set forth in the Indenture
Rebecca MacDonald, Executive Chair of Just Energy, said: "We are pleased to have completed this financing with CPPIB, a leading global institutional investor. Their thorough professionalism made this a straightforward transaction during a time of volatile markets."
Ken Hartwick, Chief Executive Officer, added: "This financing is important to Just Energy because it provides the capital necessary to fund our growth and support near term refinancing requirements. We will continue to assess our capital needs to ensure that a stable, long term funding model remains in place."
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