Wajax Announces Notice of Redemption for all of its 6.125% Senior Notes due October 23, 2020

TSX Symbol:  WJX

TORONTO, Sept. 20, 2017 /CNW/ - Wajax Corporation ("Wajax" or the "Corporation") today announced that it has issued a notice of redemption for all of its outstanding 6.125% Senior Notes due October 23, 2020 (CUSIP Nos 930783AB1 / 930783AA3) (the "Notes").  A notice of redemption (the "Redemption Notice") pursuant to the terms of the indenture governing the Notes (the "Indenture") is being distributed by Computershare Trust Company of Canada, the trustee under the Indenture. The Redemption Notice issued today states that the redemption date is October 23, 2017 (the "Redemption Date"), and the redemption price is 103.063% of the principal amount of the Notes redeemed, plus accrued and unpaid interest to the Redemption Date.

Wajax also today announced that it has successfully entered into amendments to its senior secured credit facilities, pursuant to which the aggregate commitments of the lenders have been increased from $250.0 million to $300.0 million and the maturity date has been extended to 2021. In addition, the financial covenants under the credit facilities restricting distributions, acquisitions and investments have been increased to 4.0 times debt/EBITDA.⁽¹⁾

The Notes redemption will be financed with the proceeds of drawings under the amended and restated credit facilities.

"The early redemption and refinancing of the 2020 Notes using our enhanced credit facilities will reduce Wajax's cost of debt significantly, creating incremental value for shareholders," said Darren Yaworsky, Senior Vice President, Finance and Chief Financial Officer. "Following the refinancing, we will continue to have ample capacity under our credit facilities, as well as expanded flexibility to pursue organic growth initiatives and strategic acquisitions, while maintaining the stability of our dividend."

Questions regarding the Notes redemption should be directed to Computershare Trust Company of Canada, by telephone at 1-800-564-6253 or by facsimile at [phone].

Wajax Corporation

Founded in 1858, Wajax (TSX: WJX) is one of Canada's longest-standing and most diverse industrial products and services providers. The Corporation operates an integrated distribution system providing sales, parts and services to a broad range of customers in diversified sectors of the Canadian economy, including: transportation, forestry, industrial and commercial, construction, oil sands, mining, metal processing, government and utilities and oil and gas.

The Corporation's goal is to be Canada's leading industrial products and services provider, distinguished through its three core capabilities: sales force excellence, the breadth and efficiency of repair and maintenance operations, and the ability to work closely with existing and new vendor partners to constantly expand its product offering to customers. The Corporation believes that achieving excellence in these three areas will position it to create value for its customers, employees, vendors and shareholders.

Note

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"EBITDA" is a financial measure which does not have a standardized meaning prescribed under generally accepted accounting principles ("GAAP"), and may not be comparable to similar measures presented by other issuers. The Corporation's Management's Discussion and Analysis for the quarter ended June 30, 2017 includes additional information regarding this financial measure, including a definition and a reconciliation to the most comparable GAAP measure, under the heading "Non-GAAP and Additional GAAP Measures".

Cautionary Statement Regarding Forward Looking Information

This news release contains certain forward-looking statements and forward-looking information, as defined in applicable securities laws (collectively, "forward-looking statements").  These forward-looking statements relate to future events or the Corporation's future performance.  All statements other than statements of historical fact are forward-looking statements.  Often, but not always, forward looking statements can be identified by the use of words such as "plans", "anticipates", "intends", "predicts", "expects", "is expected", "scheduled", "believes", "estimates", "projects" or "forecasts", or variations of, or the negatives of, such words and phrases or state that certain actions, events or results "may", "could", "would", "should", "might" or "will" be taken, occur or be achieved.  Forward looking statements involve known and unknown risks, uncertainties and other factors beyond the Corporation's ability to predict or control which may cause actual results, performance and achievements to differ materially from those anticipated or implied in such forward looking statements.  There can be no assurance that any forward looking statement will materialize.  Accordingly, readers should not place undue reliance on forward looking statements.  The forward looking statements in this news release are made as of the date of this news release, reflect management's current beliefs and are based on information currently available to management.  Although management believes that the expectations represented in such forward-looking statements are reasonable, there is no assurance that such expectations will prove to be correct.  Specifically, this news release includes forward looking statements regarding, among other things, our expectations that the early redemption and refinancing of the 2020 Notes will reduce our cost of debt significantly, creating incremental value for shareholders, and that, following the refinancing, we will continue to have ample capacity under our credit facilities, as well expanded flexibility to pursue organic growth initiatives and strategic acquisitions, while maintaining the stability of our dividend; our 4 Points of Growth Strategy and the goals for such strategy, including our goal of becoming Canada's leading industrial products and services provider; and our belief that achieving excellence in our areas of core capability will position Wajax to create value for its customers, employees, vendors and shareholders.  These statements are based on a number of assumptions which may prove to be incorrect, including, but not limited to, assumptions regarding general business and economic conditions; the supply and demand for, and the level and volatility of prices for, oil and other commodities; financial market conditions, including interest rates; our ability to execute our 4 Points of Growth strategy, including our ability to develop our core capabilities, execute on our organic growth priorities, complete and effectively integrate acquisitions and to successfully implement new information technology platforms, systems and software; the future financial performance of the Corporation; our costs; market competition; our ability to attract and retain skilled staff; our ability to procure quality products and inventory; and our ongoing relations with suppliers, employees and customers.  The foregoing list of assumptions is not exhaustive.  Factors that may cause actual results to vary materially include, but are not limited to, a deterioration in general business and economic conditions; volatility in the supply and demand for, and the level of prices for, oil and other commodities; a continued or prolonged decrease in the price of oil; fluctuations in financial market conditions, including interest rates; the level of demand for, and prices of, the products and services we offer; levels of customer confidence and spending; market acceptance of the products we offer; termination of distribution or original equipment manufacturer agreements; unanticipated operational difficulties (including failure of plant, equipment or processes to operate in accordance with specifications or expectations, cost escalation, our inability to reduce costs in response to slow-downs in market activity, unavailability of quality products or inventory, supply disruptions, job action and unanticipated events related to health, safety and environmental matters); our ability to attract and retain skilled staff and our ability to maintain our relationships with suppliers, employees and customers.  The foregoing list of factors is not exhaustive.  Further information concerning the risks and uncertainties associated with these forward looking statements and the Corporation's business may be found in our Annual Information Form for the year ended December 31, 2016, filed on SEDAR.  The forward-looking statements contained in this news release are expressly qualified in their entirety by this cautionary statement.  The Corporation does not undertake any obligation to publicly update such forward-looking statements to reflect new information, subsequent events or otherwise unless so required by applicable securities laws. 

SOURCE Wajax Corporation

Trevor Carson, Vice President, Financial Planning and Risk Management, Email: [email protected], Telephone #: [phone]

Related Links

http://www.wajax.com