CALGARY, Dec. 12, 2016 /CNW/ - Petrowest Corporation ("Petrowest" or the "Company") (TSX:PRW) is pleased to announce it has signed a non-binding agreement with a major financial institution ("ABL Lender") to provide a new asset-backed credit facility ("ABL Loan"). Closing of the ABL Loan transaction is conditional on the successful completion of due diligence by the ABL Lender, and other events. The due diligence process has commenced and is expected to be completed early in the first quarter of 2017. There can be no assurance the due diligence process will be completed satisfactorily, and therefore no assurance the ABL Loan transaction will close.
Should the ABL Transaction close on the proposed terms, the credit available would be sufficient to fully repay the Company's existing senior, secured credit facilities currently outstanding with a syndicate of Canadian commercial banks. The Company has retained Ernst & Young Orenda Corporate Finance Inc. as exclusive financial advisor with respect to the debt refinancing process.
In addition, Petrowest announces the retirement of its Chief Financial Officer, Lloyd Wiggins. Mr. Wiggins has resigned, effective immediately, to pursue other opportunities in the Toronto area, where he now resides. Jim Coleman, Petrowest's Chairman, stated, "Petrowest thanks Mr. Wiggins for his dedication and contributions to the Company's growth and achievements over the years. We wish him all the best in his future pursuits". In addition, Petrowest is pleased to announce the hiring of its new Chief Financial Officer, Daryl Rudichuk, joining the executive team immediately.
Mr. Rudichuk has a 36 year career as a financial professional, virtually all of which has been focused on the Canadian energy sector. During his time as a Managing Director with a bank-owned investment dealer, he was involved in multiple public equity and debt offerings, the financial restructuring of a major Canadian airline, and many M&A advisory assignments. Mr. Rudichuk co-founded a private equity fund and made portfolio and strategic investments in approximately 20 private companies. In addition, Mr. Rudichuk has served on several public and private Boards. Mr. Rudichuk commented, "As with many companies in western Canada, Petrowest is working through the difficult operating conditions presented throughout 2016. I believe the Company's business model and prospects are solid and look forward to the opportunity of working with the management team and Board to design and implement changes to the capital structure and other financial management initiatives".
"We are delighted to have Daryl join the Petrowest executive team", said Rick Quigley, Chief Executive Officer. "His technical skills, business acumen and prior experience will be extremely valuable to Petrowest as we enter into an exciting growth phase for the Company".
In addition, to maximize the effectiveness of the Company's Executive Management Team, Rick Quigley, Chief Executive Officer, will focus the majority of his attention on major projects, including the $1.75 billion main civil works contract on the Site C Clean Energy Project ("Site C") in British Columbia with BC Hydro by Peace River Hydro Partners. As a result of Mr. Quigley's increased involvement in Site C, and other potential upcoming major projects, the Board of Directors has implemented changes to allow Mr. Quigley the opportunity and time to deal with these major projects on behalf of Petrowest. Accordingly, the Board of Directors has appointed Mr. Saad, Petrowest's new Chief Operating Officer, as President and Chief Operating Officer. Mr. Saad will have the responsibilities to deal with other aspects of Petrowest's business. Mr. Saad has worked with major companies for over 15 years. Mr. Saad, in conjunction with the Executive Management Team, will manage the business and focus on creating new business opportunities. Mr. Quigley will continue to remain active as a senior member of the Executive Management Team. Jim Coleman, Chairman, on behalf of the Board of Directors, stated, "the Board of Directors believes that these steps will position Petrowest to take advantage of Site C, and other major infrastructure projects, and strongly positions Petrowest to execute on the numerous opportunities in front of the Company".
FORWARD LOOKING STATEMENTS:
Certain information and statements contained in this news release constitute forward-looking information, including anticipated completion of the due diligence process by the ABL lender by early in the first quarter of 2017. Readers should review the cautionary statement respecting forward-looking information that appears below. Any forward looking statements are made as of the date hereof and Petrowest does not undertake to publicly update and review such statements to reflect new events, subsequent events or otherwise, except to the extent events and circumstances have occurred that are reasonably likely to cause actual results to differ materially from material forward-looking information for a period that is not yet complete or as otherwise required by law.
The information and statements contained in this news release that are not historical facts are forward-looking statements. Forward-looking statements (often, but not always, identified by the use of words such as "seek", "plan", "continue", "estimate", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe", "expect", "may", "anticipate" or "will" and similar expressions) may include plans, expectations, opinions, or guidance that are not statements of fact. Forward-looking statements are based upon the opinions, expectations and estimates of management as at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or outcomes to differ materially from those anticipated or implied by such forward-looking statements. These factors include, but are not limited to, such things as changes in industry conditions (including the levels of capital expenditures made by government agencies and companies undertaking infrastructure projects and oil and gas explorers and producers), the credit risk to which Petrowest is exposed in the conduct of its business, fluctuations in prevailing commodity prices or currency and interest rates, the competitive environment to which the various business divisions are, or may be, exposed in all aspects of their business, the ability of Petrowest's various business divisions to access equipment (including parts) and new technologies and to maintain relationships with key suppliers, the ability of Petrowest's various business divisions to attract and maintain key personnel and other qualified employees, various environmental risks to which Petrowest's business divisions are exposed in the conduct of their operations, inherent risks associated with the conduct of the businesses in which Petrowest's business divisions operate, timing and costs associated with the acquisition of capital equipment, the impact of weather and other seasonal factors that affect business operations, availability of financial resources or third-party financing and the impact of new laws or changes in administrative practices on the part of regulatory authorities. Forward-looking information concerning the anticipated completion of the due diligence process by the ABL lender by early in the first quarter of 2017 is based on the due diligence process having commenced and expectations relating to the conduct of the remainder of the due diligence process.
Although management of Petrowest believes that the expectations reflected in such forward looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Accordingly, readers should not place undue reliance upon any of the forward-looking information set out in this news release. All of the forward-looking statements of Petrowest contained in this news release are expressly qualified, in their entirety, by this cautionary statement. The various risks to which Petrowest is exposed are described under "Risk Factors" in Petrowest's Annual Information Form, available under Petrowest's profile on the SEDAR website at www.sedar.com.
ABOUT PETROWEST
Petrowest is a diversified infrastructure company with primary operations based in northeastern British Columbia and Alberta. Petrowest's operations are focused on industrial and civil infrastructure projects, gravel crushing and hauling activities, as well as pre-drilling and post-completion energy services.
SOURCE Petrowest Corporation
