Just Energy Announces Amendments to Debt Covenants
July 02 2020 - 7:00AM
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 and the
total debt to EBITDA covenant from 3.50:1 to 4.00:1 with respect to
the fiscal quarter ending June 30, 2020. In addition, the
lenders under the Company’s senior unsecured term loan facility
waived compliance with the senior debt to EBITDA and total debt to
EBITDA covenants contained therein for the fiscal quarter ending
June 30, 2020.
“The relaxation of our debt covenants provides
Just Energy with increased financial flexibility as we navigate the
unique challenges brought about by COVID-19,” said Scott Gahn,
President and Chief Executive Officer of Just Energy. “We continue
to have constructive discussions with our senior lenders on a more
robust extension of our credit facility to support the long-term
health of the business.”
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, Tara
Energy, and TerraPass.
Visit https://investors.justenergy.com to learn more.
Also, find us on Facebook and follow us
on Twitter.
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. These financial measures
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. Please refer to “Key Terms” in the Just Energy Fiscal
2019 Annual Report’s management’s discussion and analysis for the
Company’s definition of “EBITDA” and other non-IFRS measures.
FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking
statements including, but not limited to, statements and
information regarding the impact of COVID-19 pandemic on the
Company’s financial reporting and operations, and the timing for
filing the Annual Filings. These statements are based on
current expectations that involve a number of risks and
uncertainties which could cause actual results to differ from those
anticipated, and the Company undertakes no obligation to update or
revise any forward-looking statement. These risks include, but are
not limited to, the impact of the evolving COVID-19 pandemic on the
Company’s business, operations and sales including risks associated
with reliance on suppliers, uncertainties relating to the ultimate
spread, severity and duration of COVID-19 and related adverse
effects on the economies and financial markets of countries in
which the Company operates, the ability of the Company to
successfully implement its business continuity plans with respect
to the COVID-19 pandemic, the ability of the Company to extend its
credit facility, the ability of the Company to reduce selling,
marketing and general and administrative expenses and the quantum
of such reductions and the impact thereof on the Company’s current
fiscal year, the Company’s ability to identify further
opportunities to improve its cost structure, general economic and
market 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 and
the U.S. Securities and Exchange Commission’s website
at www.sec.gov or through Just Energy’s website
at www.justenergygroup.com.
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:
Jim Brown Chief Financial Officer Just Energy 713-544-8191
jbrown@justenergy.com
or
Investors Michael Cummings Alpha IR Phone:
(617) 982-0475 michael.cummings@alpha-ir.com
Media Boyd Erman Longview Communications Phone:
416-523-5885 berman@longviewcomms.ca
Source: Just Energy Group Inc.
Just Energy (NYSE:JE)
Historical Stock Chart
From Mar 2024 to Apr 2024
Just Energy (NYSE:JE)
Historical Stock Chart
From Apr 2023 to Apr 2024