New Flyer, North America’s largest transit bus and motor coach manufacturer, was a top performer on the S&P/TSX composite index in 2015, fuelled largely by its acquisition of Motor Coach Industries.
Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
MEG Energy Corp. (MEG-T) announced "comprehensive refinancing transactions" that it says will "support a strengthened balance sheet, as well as increased production and reduced costs" as part of a growth program."
The refinancing plan includes an extension of the maturity date under its revolving credit facility, which will be extended two years to Nov. 5, 2021. MEG said the commitment amount of the facility will be reduced to $1.4-billion (U.S.).
The plan also includes a $357-million equity financing.
"This comprehensive refinancing provides us with a five-year window to grow the business and to pursue additional deleveraging alternatives. The amended covenant-lite credit facility, which at closing remains undrawn, is sufficient to meet our foreseeable liquidity needs," stated chief financial officer Eric Toews in a release.
The company also announced a $590-million (Canadian) capital budget.
In a separate release, MEG announced a proposed offering of senior notes.
The company said it plans a private offering of $750-million (U.S.) in aggregate principal amount of new senior secured notes due 2025 that will initially be issued through a wholly-owned subsidiary of MEG.
"MEG intends to use the net proceeds, together with cash on hand, to finance the redemption of all of its outstanding 6.50 per cent Senior Notes due March 15, 2021," the company said.
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New Flyer Industries Inc. (NFI-T) said BC Transit has awarded it three separate contracts for 70 New Flyer Xcelsior 40-foot compressed natural gas buses.
In a separate release, New Flyer said it delivered 993 equivalent units (EUs) in the fourth quarter of 2016, an increase of 304 EUs compared to 689 EUs in the fourth quarter.
It also said deliveries of zero-emission buses reached their highest level in company history in 2016, or 213 EUs.
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NYX Gaming Group Ltd (NYX-X) has received approval to provide its products and services in B.C., Quebec and Nova Scotia
"Satisfying the comprehensive conditions set out by the gaming regulators and authorities across these provinces is testament to our long-term strategy to operate at the highest levels in regulated gaming worldwide," Matt Davey, CEO of NYX Gaming Group said in a release.
"The approvals pave the way to expand our footprint with gaming content and sportsbook services across Canada."
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Leagold Mining Corp. (LMC.H-T) is buying the Los Filos Gold Mine in Guerrero State, Mexico from Goldcorp Inc. (G-T;GG-N) for $350-million.
The purchase price is made up of $279-million in cash and $71-million in common shares of Leagold.
Based on Leagold's transaction financing plan, Goldcorp is expected to become 30-per-cent shareholder of Leagold.
Goldcorp will have the right to nominate a director to Leagold's board.
"The Los Filos Gold Mine represents an exceptional opportunity to acquire a quality operation with scale that generates free cash flow and has an identified future growth project," stated CEO Neil Woodyer in a release.
"We are thrilled to have Goldcorp as a strategic partner as we launch Leagold with a tremendous asset," stated chairman Frank Giustra. "We have a highly-experienced management team that is strengthened by a well-connected board of directors giving us the mix of skills and relationships needed to achieve our strategic goals."
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Bluestone Resources Inc. (BSR-X) says it has a deal to buy 100 per cent of Goldcorp Inc.'s Cerro Blanco Gold project and Mita Geothermal project in Guatemala.
"Cerro Blanco represents a unique and transformational acquisition for Bluestone," stated Bluestone CEO John Robins. "The Cerro Blanco Gold Project is fully permitted for production, designed and developed to world class standards and hosts very high gold grades with strong potential to expand existing resources."
The purchase price includes $18-million (U.S.) in cash and $2-million cash as a non-refundable deposit to be applied to the purchase price of Marlin equipment, as well as a 1-per-cent net smelter returns royalty on the sale of gold and silver produced from Cerro Blanco.
It also includes $15-million to be paid in cash to Goldcorp within six months of commencement of commercial production at Cerro Blanco; and 9.9-per-cent of the fully diluted issued and outstanding securities of the company after completion of a financing.
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Crius Energy Trust (KWH.UN-T) said its board approved a 2-per-cent increase to distributions, bringing the total annualized distribution to 77.3 cents per unit.
"Based on the positive results we continue to see from our growth strategy in our deregulated energy and solar businesses, management and the board are very pleased to begin 2017 with another 2-per-cent distribution increase for our investors," stated CEO Michael Fallquist in a release.
"The company continues to maintain a very conservative payout ratio and the board is confident that it will be able to continue increasing distributions throughout 2017, with plans to evaluate further distribution increases beyond the end of the year."
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Corsa Coal Corp. (CSO-X) is forecasting metallurgical coal sales to increase by 100 per cent in 2017 over 2016 levels, "using the midpoints of 2016 and 2017 guidance."
The company said its metallurgical sales are 90 per cent committed at an average price of $166 (U.S.) per ton for the first quarter, representing an increase of 66 per cent over levels in the fourth quarter of 2016.
"With the low levels of capacity utilization at our coal preparation infrastructure, a portfolio of low mining cost permitted and permit-in-process mines, and an emerging sales and trading platform, the building blocks are in place for strong growth in the years ahead," the company said.
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Alaris Royalty Corp. (AD-T) says it will receive a cash distribution of $30-million (U.S.) as part of a proposed transaction with Sequel Youth and Family Services, a privately owned company that develops and operates programs for people with behavioural, emotional, or physical challenges.
Alaris, an equity investment company, said it will also retain $62.2-million of new preferred equity in Sequel, a total value of $92.2-million on is invested capital of $73.5-million.
"It is also proposed that Alaris will receive a continuing annual distribution of $6.2-million representing a 14.2-per-cent yield on Alaris' remaining cost base in Sequel of $43.5-million," the company said.
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Sirius XM Canada Holdings Inc. (XSR-T) reported first-quarter revenue of $87.2-million, up 4.4-per cent from $83.5-million a year ago.
"The year-over-year improvement reflects growth in the company's self-pay subscriber base," the company said.
Net income was $9.8-million, down 2.7 per cent, compared to net income of $10.1-million a year earlier, "mainly due to higher operating costs combined with depreciation and amortization, partly offset by increased revenues."
The company said its board also has declared a cash dividend payment of 10.5 cents per share payable Feb. 13, to shareholders of record at the close of business on Jan. 27.
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Summit Industrial Income REIT (SMU.UN-T) is raising $40-million in a bought-deal equity offering.
Summit said it has entered into an agreement with a syndicate of underwriters co-led by BMO Capital Markets and CIBC Capital Markets to sell 6.5 million units for $6.20 each.
Proceeds will be used to reduce debt and fund future acquisitions.
"The REIT is currently in negotiations in connection with opportunities that may be suitable for the potential acquisition of several light industrial properties located in the REIT's main target markets," it stated in a release.
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Northern Dynasty Minerals Ltd. (NDM-T; NAK-N) is raising $25-million (U.S.) in a bought-deal financing.
The company said it has an agreement with Cantor Fitzgerald Canada Corp., TD Securities Inc. and BMO Capital Markets, as co-lead underwriters and joint bookrunners, to buy 13.5 million shares for $1.85 each.
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Slate Retail REIT (SRT.U-T) is raising $65-million in a bought-deal financing.
It has an agreement to sell about 4.5 million units to a syndicate of underwriters led by CIBC World Markets Inc., BMO Capital Markets and GMP Securities for $14.35 per unit, or $10.89 (U.S.)
The REIT's manager, Slate Asset Management L.P. will buy 350,000 units at the offering price for gross proceeds of approximately $5-million (Canadian).
Proceeds will be used to reduce debt and fund future acquisitions.
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Sandvine Corp. (SVC-T) reported fourth-quarter revenue of $27-million, down 23 per cent from $35-million a year earlier.
Net income was $2-million or 2 cents per share compared to net income of $25.2-million or 17 cents a year ago.
Analysts were expecting revenue of $28.4-million and earnings of 2 cents per share.
"While market conditions didn't support revenue growth, 2016 was our fourth consecutive year of profitability," stated CEO Dave Caputo.
The company also announced an increase in its quarterly dividend to 2 cents per common share, or 8 cents a year, up from 7 cents a year.
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Tamarack Valley Energy Ltd. (TVE-T) completed its acquisition of Spur Resources Ltd. and increased its borrowing base by more than 80 per cent to $220-million from $120 million.
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Gran Tierra Energy Inc. (GTE-N; GTE-T) says it's evaluating a proposal relating to the company's assets in Peru.
The company said the proposal will involve a spin-out of the assets to a separate entity in which Gran Tierra will retain an equity interest. The spin-out company would engage in external capital raising activities to fund the ongoing development of the Peruvian assets, the company said.
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