Tervita Corporation

Tervita Corporation completes $3.5 billion recapitalization transaction under the Canada Business Corporations Act

Client

Tervita Corporation

Value

Approximately $3.5 billion

Service

Insolvency and Restructuring

Date Closed

December 2016

Industry

Energy (Oil & Gas)

Lead Office

Toronto

 

On December 14, 2016, Tervita Corporation, a leading environmental solutions provider, implemented its court-approved plan of arrangement under the Canada Business Corporations Act. The plan implemented a recapitalization transaction that resulted in a reduction of Tervita’s total debt from approximately C$2.6 billion to approximately C$475 million.

In connection with the recapitalization transaction, Tervita negotiated a C$200 million credit facility with a syndicate of lenders led by The Toronto-Dominion Bank as administrative agent, and completed an offering of 7.625% senior secured notes due 2021 in the aggregate principal amount of US$360 million.

The recapitalization transaction successfully decreased Tervita’s long-term debt, which will provide the company with greater flexibility and the working capital necessary to pursue new opportunities for growth.

Osler, Hoskin & Harcourt LLP represented Tervita with a team led by Marc Wasserman and Michael De Lellis, and included Andrea Whyte, Colin Feasby, Firoz Ahmed, Ted Thiessen, Martino Calvaruso, Justin Sherman, Michael Shakra, Melissa Burkett and Miju Damodar.