Just Energy Announces Senior Debt Covenant Amendment and Suspension of the Dividend on its Series A Preferred Shares
December 02 2019 - 8:00AM
Just Energy Group Inc. (“
Just Energy” or the
“
Company”) (TSX:JE) (NYSE:JE) announced today that
it has amended its senior secured credit facility to increase the
senior debt to EBITDA covenant ratio from 1.50:1 to 2.00:1 for the
third quarter of Fiscal 2020. In addition, the Company has
amended the covenants on its senior unsecured term loan facility to
increase the senior debt to EBITDA covenant ratio from 1.65:1 to
2.15:1 for the third quarter of Fiscal 2020. Both changes are
effective only for the third quarter of Fiscal 2020 and the
covenants will revert to the prior levels following December 31,
2019.
In connection with the amendments, the
agreements governing both facilities have been changed to restrict
the declaration and payment of dividends on the Company’s 8.50%
Series A Fixed-to-Floating Rate Cumulative Redeemable Perpetual
Preferred Shares (“Series A Preferred Shares”) until the Company’s
senior debt to EBITDA ratio is no more than 1.50:1 for two
consecutive fiscal quarters. Accordingly, the Company is
suspending, with immediate effect, the declaration and payment of
dividends on the Series A Preferred Shares until the Company is
permitted to declare and pay dividends under the agreements
governing its facilities. However, dividends on the Series A
Preferred Shares will continue to accrue in accordance with Series
A Preferred Share terms during the period in which dividends are
suspended. Any dividend payment following the suspended
period will be credited against the earliest accumulated but unpaid
dividend. The Series A Preferred Shares trade on
the Toronto Stock Exchange under the symbol “JE.PR.U” and
on the New York Stock Exchange under the symbol
“JE.PR.A”.
The previously announced Strategic Review
remains active and is progressing. Additionally, the Company
continues to implement measures designed to lower costs by
eliminating unnecessary overhead and low-return investments,
improve the quality of its customer base and fortify operational
and financial controls.
About Just Energy Group
Inc.
Just Energy is a consumer company focused
on essential needs, including electricity and natural gas
commodities; health and well-being, such as water quality and
filtration devices; and utility conservation, bringing energy
efficient solutions and renewable energy options to consumers.
Currently operating in the United
States and Canada, Just Energy serves
residential and commercial customers. Just Energy is the
parent company of Amigo Energy, EdgePower Inc., Filter
Group Inc., Hudson Energy, Interactive Energy Group, Just
Energy Advanced Solutions, Tara Energy, and terrapass.
Visit https://investors.justenergy.com/ to learn more.
Also, find us on Facebook and follow us
on Twitter.
FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking
statements including statements regarding the Company’s financial
outlook. Forward-looking statements in this press release include,
but are not limited to, statements and information regarding the
future payment of dividends on the Series A Preferred Shares and
the status of the Strategic Review. These statements are based on
current expectations and assumptions that are believed to be
reasonable, but that involve a number of risks and uncertainties
which could cause actual results to differ from those anticipated.
These risks include, but are not limited to, the results of the
Strategic Review, the ability to continue to eliminate unnecessary
overhead and low-return investments, the ability to improve
operational and financial controls, general economic and market
conditions, weather conditions, levels of customer natural gas and
electricity consumption, rates of customer additions and renewals,
rates of customer attrition, fluctuations in natural gas and
electricity prices, changes in regulatory regimes, results of
litigation and decisions by regulatory authorities, competition and
dependence on certain suppliers. Additional information on these
and other factors that could affect Just
Energy's operations, financial results or dividend levels are
included in Just Energy's annual information form and
other reports on file with Canadian securities regulatory
authorities which can be accessed through the SEDAR website
at www.sedar.com, on the U.S. Securities Exchange
Commission’s website at www.sec.gov or through Just
Energy's website at www.justenergygroup.com. All of the
forward-looking statements in this press release are qualified by
the foregoing cautionary statements. Neither the Toronto Stock
Exchange nor the New York Stock Exchange has
approved nor disapproved of the information contained herein.
NON-IFRS MEASURES
The financial measures such as “EBITDA”, do not
have a standardized meaning prescribed by International Financial
Reporting Standards (“IFRS”) and may not be comparable to similar
measures presented by other companies. This financial measure
should not be considered as an alternative to, or more meaningful
than, net income (loss), cash flow from operating activities and
other measures of financial performance as determined in accordance
with IFRS, but the Company believes that these measures are useful
in providing relative operational profitability of the Company’s
business.
Neither the Toronto Stock Exchange nor the New
York Stock Exchange has approved nor disapproved of the information
contained herein.
FOR FURTHER INFORMATION PLEASE
CONTACT:
Scott Gahn Chief Executive Officer Phone: (713) 412-8314
sgahn@justenergy.com
or
Investors Michael Cummings Investor Relations
Phone: (617) 982-0475 JE@alpha-ir.com
Media Boyd Erman Longview Communications Phone:
416-523-5885berman@longviewcomms.ca
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