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Shawcor Ltd. Announces Repurchase of US$75 Million of Its Senior Notes

TORONTO, April 05, 2016 (GLOBE NEWSWIRE) -- In order to improve the Company’s ability to handle the risks and opportunities posed by the current market environment and to facilitate future continuing compliance with debt covenants, the Company is announcing today that it has utilized a portion of its existing cash balances to repurchase US$75 million of its Senior Notes at a purchase price of US$75.75 million plus accrued interest.

After today’s repurchase of Senior Notes, the Company continues to hold approximately C$182 million in cash and cash equivalents and has US$275 million in Senior Notes outstanding, as follows:

i) US$82 million of 2.98% Senior Notes, Series A, due March 31, 2020;
ii) US$79 million of 3.67% Senior Notes, Series B, due March 31, 2023;
iii) US$76 million of 3.82% Senior Notes, Series C, due March 31, 2025; and
iv) US$38 million of 4.07% Senior Notes, Series D, due March 31, 2028.

Shawcor (TSX:SCL) is a global energy services company specializing in products and services for the pipeline and pipe services segment of the oil and gas industry and related products for petrochemical and industrial markets. The Company operates through a global network of fixed and mobile manufacturing and service facilities and is valued for its integrity, technology and proven capability to execute the most complex projects in our industry.

This news release contains forward-looking information within the meaning of applicable securities laws. This forward looking information is based on assumptions, estimates, and analysis made in the light of the Company’s experience and its perception of trends, current conditions and expected developments, as well as other factors that are believed by the Company to be reasonable and relevant in the circumstances. Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to be materially different from those predicted, expressed, or implied by the forward-looking information. The forward-looking information is provided as of the date of this news release and the Company does not assume any obligation to update or revise the forward-looking information to reflect new events or circumstances, except as required by law.

For further information, please contact: Shawcor Ltd. Gary Love Vice President, Finance & CFO Tel: 416-744-5818 Email: glove@shawcor.com Website: www.shawcor.com

Source: Shawcor Ltd.