Business
Update on Proposed Acquisition and Offering, Second Quarter Operations and Declaration of Second Quarter Dividend
CALGARY , June 23, 2014 /CNW/ - Northern Frontier Corp. (TSXV: FFF) (the " Corporation "...
About this update from 55 North Mining Inc.
[{"type":"text","content":"\n\n\nCALGARY, June 23, 2014 /CNW/ - Northern Frontier Corp. (TSXV: FFF) (the\n \"Corporation\" or \"Northern Frontier\") is providing an update on the proposed Central Water & Equipment\n Services Ltd. (\"Central Water\") acquisition and related offering, its second quarter operations and\n the declaration of its second quarter 2014 dividend.\n\n\nUpdate on Proposed Central Water Acquisition and Financing\n\n\nAs previously announced on May 21, 2014, Northern Frontier agreed to\n acquire Central Water (the \"Acquisition\") and was pursuing a $75.0 million private placement offering (the \"Offering\") of senior secured second lien notes to finance the Acquisition. To\n date, Northern Frontier has received varied forms of interest and\n options for the Offering including a combination of senior,\n subordinated and mezzanine financing structures. Management has\n determined that some of these options present a better cost of capital\n and benefits to our shareholders. Consequently, the Corporation has\n terminated the Offering so that it can pursue these alternative\n options.\n\n\nNorthern Frontier is focused on completing the Acquisition to add client\n and services diversification as well as the accretive cash flow that\n Central Water will generate to support our growth strategy. Management\n has commenced negotiations to complete the financing (\"Financing\") to acquire Central Water and anticipates that it will close the\n Acquisition in the third quarter of 2014.  Furthermore, the vendors of\n Central Water have agreed to work with Northern Frontier within the\n expected timeline to complete the Financing.\n\n\nUpdate on Second Quarter Operations\n\n\nOverall, operating activities to date for the second quarter of fiscal\n 2014 have been impacted by high levels of rain and inclement weather in\n the Conklin area. A number of projects planned for the second quarter\n have been delayed awaiting an improvement in weather conditions\n conducive to Northern Frontier's civil activities. A combination of\n revenue mix and customer project deferrals resulting from the wet\n ground conditions are expected to have an adverse impact on Northern\n Frontier's second quarter financial results. In addition, the\n termination of the Offering and delay in the anticipated closing of the\n Acquisition will result in the Corporation i...