Methanex Secures Additional Financial Flexibility Under Its Credit Facilities
June 03 2020 - 6:15PM
Methanex Corporation (TSX:MX) (NASDAQ:MEOH) announced today that it
has amended its $300 million committed revolving credit facility
and $800 million non-revolving construction facility. These
changes amend and waive certain terms and conditions of the credit
facilities, which will provide meaningful financial covenant relief
and greater flexibility on the timeline to complete the Geismar 3
project.
The financial covenant relief is effective upon
Methanex’s election and will provide, among other things, more
flexibility in the calculation of the minimum EBITDA to interest
coverage ratio through June 30, 2021 and an increase of the maximum
debt to capitalization ratio through June 30, 2023.
John Floren, President & CEO of Methanex,
commented, “We would like to thank our banking partners for their
ongoing support during this challenging business environment. We
have a strong liquidity position as we ended the first quarter of
2020 with over $800 million of cash on the balance sheet. These
changes to our credit facilities will significantly increase
Methanex’s financial flexibility to enable us to navigate through
this difficult time and remain in a strong financial position.”
A copy of the amendment and consent and waiver
to the credit facilities can be found on SEDAR at www.sedar.com and
on EDGAR at www.sec.com/edgar.
Methanex is a Vancouver-based, publicly traded
company and is the world's largest producer and 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" and on the NASDAQ Global Market in the United
States under the trading symbol "MEOH”. Methanex can be visited
online at www.methanex.com.
Forward-Looking Information
Warning
This news release contains forward-looking
statements with respect to us and our industry. These statements
relate to future events or our future performance. All statements
other than statements of historical fact are forward-looking
statements. Statements that include the words "will," 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 cash flows, earnings capability and share price;
- availability of committed credit facilities and other
financing;
- our ability to meet covenants or continue to obtain waivers
associated with our long-term debt obligations;
- our financial strength and ability to meet future financial
commitments; and
- the potential future impact of the COVID-19 pandemic.
We believe that we have a reasonable basis for making such
forward-looking statements. The forward-looking statements in this
document 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:
- the supply of, demand for and price of methanol, methanol
derivatives, natural gas, coal, oil and oil derivatives; and
- the availability of committed credit facilities and other
financing.
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 the supply, demand and price for methanol and its
derivatives, including demand for methanol for energy uses;
- actions of competitors, suppliers and financial
institutions;
- worldwide economic conditions;
- the future impact of the COVID-19 pandemic; and
- other risks described in our 2019 Annual Management’s
Discussion and Analysis and our First Quarter 2020 Management’s
Discussion and Analysis.
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
implied by forward-looking statements may not occur and we do not
undertake to update forward-looking statements except as required
by applicable securities laws.
For further information, contact:
Kim CampbellDirector, Investor RelationsMethanex
Corporation604 661 2600 or Toll Free: 1 800 661
8851www.methanex.com
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