Pinnacle Renewable Energy Announces Agreement with Lenders for Amendments to Credit Facility to Improve Financial Flexibility
/NOT FOR DISTRIBUTION IN THE UNITED STATES/
VANCOUVER, BC, June 29, 2020 /CNW/ - Pinnacle Renewable Energy Inc. ("Pinnacle" or the "Company") (TSX: PL) today announced it has reached an agreement with its lenders to amend the Company's existing credit agreement. The terms of the amendment are temporary in nature and are designed to improve financial flexibility for the Company through the end of June 2021.
Key Amended Credit Facility Highlights
- Introduce a covenant relief period that will apply from Q2 2020 through Q2 2021. During this time, the Company's leverage covenant will be relaxed from existing levels.
- Extend access to the Company's delayed draw facility to June 30, 2021 from December 31, 2020.
- Modify interest rates applicable during the covenant relief period.
- Maintain an option to revert to the original terms and conditions of the credit facility at any time during the covenant relief period.
The amendment provides Pinnacle with an appropriate level of flexibility during the period of economic uncertainty associated with COVID-19 to continue advancing previously announced growth projects in both western Canada and Alabama.
A copy of the amendment may be found on SEDAR at www.sedar.com.
About Pinnacle
Pinnacle is a growing industrial wood pellet manufacturer and distributor and the third largest producer in the world. The Company produces sustainable fuel for renewable electricity generation in the form of industrial wood pellets. This fuel is used by large-scale thermal power generators as a greener alternative to produce reliable baseload renewable power. Pinnacle is a trusted supplier to its customers, who require reliable, high-quality fuel supply to maximize utilization of their facilities. Pinnacle takes pride in its industry leading safety practices. The Company operates eight industrial wood pellet production facilities in western Canada and one in Alabama, with two additional facilities under construction in Alberta and Alabama. The Company also owns a port terminal in Prince Rupert, B.C. Pinnacle has entered into long-term take-or-pay contracts with utilities in the U.K., Europe and Asia that represent an average of 99% of its production capacity through 2026.
Forward-Looking Information
This release may contain forward-looking information about Pinnacle's future financial outlook and anticipated events or results and may include information regarding its financial position, business strategy, growth strategies, budgets, operations, financial results, plans, objectives and other information that is not historical fact. Particularly, information regarding the Company's expectations of future results, performance, achievements, prospects or opportunities or the markets in which it operates is forward-looking information. In some cases, forward-looking information can be identified by the use of such words as believe, expect, intend, forecast, plan, target, budget, outlook, opportunity, risk, strategy or variations or comparable language, or statements that certain actions, events or results may, could, would, should, might, or will occur or not occur.
Readers are urged to consider risks, uncertainties and assumptions carefully in evaluating the forward-looking information in this release and are cautioned not to place undue reliance on such information. See "Forward-looking Information" and "Risk Factors" in the Company's most recent Annual Information Form and its Management's Discussion & Analysis for Q1 2020, which are available on www.pinnaclepellet.com and www.sedar.com for a discussion of the uncertainties, risks and assumptions associated with these statements. We caution that the list of risk factors and uncertainties is not exhaustive and other factors could also adversely affect our results. Material factors and assumptions used to develop the forward-looking information in this release include assumptions regarding the availability of committed credit facilities and other financing and the effects of the COVID-19 pandemic. Unless otherwise indicated, the forward-looking information is based on the Company's expectations at the date of this release. Pinnacle has no obligation or undertaking to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required by law.
SOURCE Pinnacle Renewable Energy Inc.
Investor Relations, Pinnacle Renewable Energy, Tel: 1-877-737-4344, Email: [email protected], Web: www.pinnaclepellet.com
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