Retail Supplier Announces Favorable Renegotiation of Credit Facility

Just Energy Group Inc. announced that the company has renegotiated an agreement with a syndicate of lenders which includes long-time lender, Canadian Imperial Bank of Commerce, as Administrative Agent along with current lender National Bank of Canada as Co-Lead Arrangers and Joint Book Runners.

The agreement extends Just Energy's credit facility for an additional three years to September 1, 2018. The line has been set at $277.5 million with an accordion for Just Energy to draw up to $350 million (all $ Canadian).

The credit facility provides the company with, "increased financial flexibility to support our growth strategy, which focuses on new geographies, innovative products that meet customers' changing demands, and new energy management solutions that will continue to disrupt the traditional utility model," said Deb Merril, Co-Chief Executive Officer of Just Energy

"The new facility, combined with strong earnings and cash flow generation, exceeds our working capital liquidity needs and our expected growth investment requirements for the next three years," added Pat McCullough, Just Energy's CFO.

"Debt reduction remains a clear priority for Just Energy. Over the past year, we have reduced our debt by $359.7 million, or 34.7%. While much has been accomplished to improve the overall balance sheet and debt position, management feels there's more that can be done. Securing the favorable credit facility was the next step in a logical, financially prudent plan to further reduce debt. We are now positioned to unlock non-core asset divestiture proceeds to be utilized for certain debt restructuring and to continue supporting our annual dividend commitment to our shareholders," McCullough said