Methanex Enhances Financial Strength and Flexibility With New Banking Facility
August 28 2009 - 7:30AM
Marketwired
Methanex Corporation (TSX: MX)(NASDAQ: MEOH)(SANTIAGO: Methanex)
has finalized a new US$200 million revolving credit facility with a
syndicate of banks. The new facility expires in May 2012 and
replaces the Company's existing revolving facility, which would
have expired in mid-2010. RBC Capital Markets Inc. was the Arranger
for the facility.
Ian Cameron, SVP, Finance and CFO of Methanex commented,
"Consistent with our prudent approach to financial management, we
are committed to maintaining a strong financial position. In the
current uncertain economic environment, we believe there is value
maintaining a two to three year horizon on the facility and we are
pleased to have also agreed to more flexible terms that improve the
accessibility of the facility."
Mr. Cameron added, "With US$278 million of cash on hand at the
end of the second quarter, this new undrawn US$200 million credit
facility, and no near-term refinancing requirements, we believe we
are well positioned to meet our financial commitments and continue
to invest to grow the Company."
Methanex is a Vancouver-based, publicly traded company and is
the world's largest supplier of methanol to major international
markets. Methanex shares are listed for trading on the Toronto
Stock Exchange in Canada under the trading symbol "MX"; on the
NASDAQ Global Market in the United States under the trading symbol
"MEOH"; and on the Foreign Securities Market of the Santiago Stock
Exchange in Chile under the trading symbol "Methanex". Methanex can
be visited online at www.methanex.com.
This press release contains forward-looking statements with
respect to us and the chemical industry. Statements that include
the words "believes", "expects", "may", or the negative version of
those words or other comparable terminology and similar statements
of a future or forward-looking nature identify forward-looking
statements. More particularly and without limitation, any
statements regarding the following are forward looking statements:
expected capital expenditures and future sources of funding for
such capital expenditures, availability of committed credit
facilities and other financing, commercial viability of, or ability
to execute, future projects, capacity expansions, acquisitions or
dispositions, financial strength and ability to meet future
financial commitments, and expected global or regional economic
activity (including industrial production levels) and expected
timing for recovery from the current economic recession.
We believe that we have a reasonable basis for making such
forward-looking statements. The forward-looking statements in this
press release are based on our experience, our perception of
trends, current conditions and expected future developments as well
as other factors. Certain material factors or assumptions were
applied in drawing the conclusions or making the forecasts or
projections that are included in these forward-looking statements,
including, without limitation, future expectations and assumptions
concerning the following: supply of, demand for, and price of,
methanol, methanol derivatives, natural gas, oil and oil
derivatives, production rates of our facilities, success of natural
gas exploration in Chile and New Zealand, receipt of third party
consents or approvals, including without limitation, governmental
approvals related to natural gas exploration rights and other
rights and projects, operating costs including natural gas
feedstock and logistics costs, capital costs, tax rates, cash
flows, foreign exchange rates and interest rates, completion date
and cost of our methanol project in Egypt, availability of
committed credit facilities, global and regional economic activity
(including industrial production levels), absence of major natural
disasters or global pandemics, absence of material changes in laws
or regulations, and performance of contractual obligations by
customers, suppliers and other third parties.
However, forward-looking statements, by their nature, involve
risks and uncertainties that could cause actual results to differ
materially from those contemplated by the forward-looking
statements. The risks and uncertainties primarily include those
attendant with producing and marketing methanol and successfully
carrying out major capital expenditure projects in various
jurisdictions, including without limitation: conditions in the
methanol and other industries, including fluctuations in supply,
demand and price for methanol and its derivatives, including demand
for methanol for energy uses, the price of natural gas, oil and oil
derivatives, the success of natural gas exploration and development
activities in southern Chile and New Zealand and our ability to
obtain any additional gas in those regions or other regions on
commercially acceptable terms, the on-time and on-budget completion
of our new methanol joint venture project in Egypt, the ability to
successfully carry out corporate initiatives and strategies,
actions of competitors and suppliers, actions of governments and
governmental authorities including implementation of policies or
other measures by the Chinese government or other governments that
could impact demand for methanol, changes in laws or regulations,
import or export restrictions, anti-dumping measures, increases in
duties, taxes and government royalties and other actions by
governments that may adversely affect our operations, world-wide
economic conditions, and other risks described in our 2008
Management's Discussion & Analysis and most recent Quarterly
Management's Discussion & Analysis.
In addition to the foregoing risk factors, the current global
financial crisis and its impact on global economies has added
additional risks and uncertainties including changes in capital
markets and corresponding effects on the company's investments, our
ability to access existing or future credit and defaults by
customers, suppliers or insurers.
Having in mind these and other factors, investors and other
readers are cautioned not to place undue reliance on
forward-looking statements. They are not a substitute for the
exercise of one's own due diligence and judgment. The outcomes
anticipated in forward-looking statements may not occur and we do
not undertake to update forward-looking statements except as
required by applicable securities laws.
Contacts: Jason Chesko Director, Investor Relations Methanex
Corporation 604 661 2600 or Toll-Free: 1 800 661 8851
www.methanex.com
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