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SECURE Energy Announces First Public Credit Rating and Provides Update on Merger with Tervita Corporation
SECURE Energy Announces First Public Credit Rating and Provides Update on Merger with Ter...
About this update from Secure Waste Infrastructure Corp.
[{"type":"text","content":"\n \n \n \n SECURE Energy Announces First Public Credit Rating and Provides Update on Merger with Tervita Corporation\n \n \n /* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n \n \n \n \n \n \n Canada NewsWire\n \n \n \n \n CALGARY, AB,\n \n April 12, 2021\n \n /CNW/ - SECURE Energy Services Inc. (\"SECURE\", the \"Corporation\") (TSX: SES) announced today that S&P Global Ratings (\"S&P\") has provided an initial issuer credit rating on the Corporation of \"B\" with a positive outlook following the merger announcement with Tervita Corporation (\"Tervita\") last month. This represents the Corporation's first public issuer credit rating and the S&P rating is expected to increase transparency and comparability for debt investors and other capital market participants.\n \n \n On March 8, 2021, SECURE and Tervita entered into an arrangement agreement to combine in an all-share transaction, creating a stronger midstream infrastructure and environmental solutions business (the \"Transaction\"). Upon completion of the Transaction, pursuant to which SECURE will acquire all of the issued and outstanding common shares of Tervita (the \"Tervita Shares\") on the basis of 1.2757 common shares of SECURE (the \"SECURE Shares\") for each outstanding Tervita Share, SECURE and Tervita shareholders will own approximately 52% and 48%, respectively, of the combined company. The combined company will operate as SECURE and remain listed on the Toronto Stock Exchange (\"TSX\") as TSX: SES.\n \n \n The Transaction combines highly complementary midstream infrastructure asset bases and environmental service lines, which are expected to materially enhance scale and utilization and provide operating efficiencies for the combined company's customers. Significant estimated annual integration cost savings of\n \n $75 million\n \n are expected to be realizable within 12 to 18 months after closing, contributing to the pro forma discretionary free cash flow profile.\n \n \n Maintaining financial discipline will continue to be a key priority for SECURE following the close of the Transac...