Enercare Solutions completes debt financing

On May 11, 2016, Enercare Solutions Inc. (Enercare Solutions), a wholly-owned subsidiary of Enercare Inc. (Enercare) closed its previously announced financing with its existing lenders, The Toronto-Dominion Bank and National Bank of Canada, pursuant to which the lenders committed to provide Enercare Solutions with debt facilities comprised of: (i) a 4-year non-revolving, non-amortizing variable rate term credit facility in the amount of $210 million, which was drawn for the purpose of financing the US$340.75 million acquisition of SEHAC Holdings Corporation (Service Experts) and re-financing EnerCare Solutions' existing $60 million term loan; and (ii) a 5-year $100 million revolving, non-amortizing variable rate credit facility, which replaces EnerCare Solutions' existing $35 million revolving facility and which is currently undrawn.

The remainder of the acquisition was funded through the issuance of 15,725,600 subscription receipts (which included 1,429,600 subscription receipts sold as a result of the exercise in full of the over-allotment option by the underwriters) in Enercare Inc. offered on a bought deal basis through a syndicate of underwriters co-led by National Bank Financial and TD Securities. The subscription receipts were offered at a price of C$15.25 per receipt, for gross proceeds to Enercare of C$239.8 million.

Enercare, headquartered in Toronto, is one of Canada's largest home and commercial services and energy solutions companies. It provides water heaters, furnaces, air conditioners and other HVAC rental products, plumbing services, protection plans and related services to more than 1.2 million customers.

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