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Enerflex Ltd. Announces Extension and Consolidation of Credit Facilities, New Target Leverage Framework and Timing of Second Quarter Results

Extending Maturity of Revolving Credit Facility to October 2026 and Increasing Availability to $800 Million; Provides Ample Liquidity to Support Global Business Enerflex Will Be Repaying Its Existing Term Loan, Reflecting On-Going Efforts to Reduce Finance Costs and Optimize Debt Stack Targeting a Bank-Adjusted Net Debt-To-Ebitda Ratio of 1.5x to 2.0x CALGARY, Alberta, June 26, 2024 (GLOBE NEWSWIRE) -- Enerflex Ltd. (TSX:EFX) (NYSE:EFXT) ("Enerflex" or the "Company") today announced the extension and consolidation of its credit facilities and outlined a new target leverage framework. All amounts presented in this release are in U.S. Dollar ("USD") unless otherwise stated. Extension and Consolidation of Credit Facilities Enerflex has entered into an agreement to extend the maturity date of its secured revolving credit facility (the "RCF") by one year to October 13, 2026. Availability under the RCF has been increased to $800 million from $700 million. Enerflex has received renewed lending commitments from all current syndicate members and has also introduced HSBC Bank USA, N.A. as a lender. In conjunction with the extension, Enerflex will be repaying all outstanding amounts under its secured term loan (the "TLA") using cash on hand and availability under the expanded RCF. As at March 31, 2024, the TLA had drawings of $120 million. The Company also continues to maintain a $70 million unsecured credit facility (the "LC Facility") with one of the lenders in its RCF syndicate. The LC Facility is supported by performance security guarantees provided by Export Development Canada. As at March 31, 2024, the Company had utilized $36 million of the $70 million LC Facility limit. Target Leverage Framework and Capital Allocation Enerflex is introducing a new leverage framework, targeting a bank-adjusted net debt-to-EBITDA ratio of 1.5x to 2.0x. The new leverage framework is underpinned by the highly utilized U.S. contract compression fleet, contracted international Energy Infrastructure product line and the recurring nature of our After-market Services business. Enerflex's Energy Infrastructure product line is supported by customer contracts, which are expected to generate approximately $1.6 billion of revenue during their current remaining terms. Providing meaningful returns to shareholders is a priority for Enerflex. Once the Company is operating within its target leverage range, Enerflex expects to re-evaluate capital allocation priorities, which could include increased dividends, share repurchases, additional growth capital spending, and/or further repayment of debt. Allocation decisions will be based on providing the most attractive shareholder returns and measured against Enerflex's ability to maintain balance sheet strength. Management Commentary Preet Dhindsa, Enerflex's Senior Vice President and Chief Financial Officer, stated, "We are pleased with the extension and expansion of our RCF, appreciate the support of our syndicate members, and welcome HSBC Bank USA, N.A. as a new member. Repayment of the TLA reduces Enerflex's finance ...