Services' Sale to Asurix Complete
HAMILTON, ONTARIO (BUSINESS WIRE) - Philip Services Corp (TSE:PHV) (ME:PHV) Philip Services Corp. (TSE / ME: PHV) today announced that it has closed the sale of its 68 percent interest in Philip Utilities Management Corporation ("Philip Utilities") to Azurix Corp. ("Azurix"), an affiliate of Enron Corp. of Houston, Texas, for US$70 million.
The proceeds from the sale will be used to repay a portion of Philip's existing syndicated debt. As previously announced, Philip has executed a lock-up agreement with its syndicated lenders which provides for the financial restructuring of the Company through a pre-packaged plan of reorganization. Under the terms of the lock-up agreement, the pay down of the existing syndicated debt with the proceeds from the sale of Philip Utilities will result in a reduction of the Company's restructured senior secured debt from US$300 million to US$250 million.
"Over the past five years, Philip Utilities has grown to become a North American leader in utilities management and related services," said Allen Fracassi, interim CEO of Philip Services. "The sale to Azurix will support its continued expansion in a fast growing market. For Philip Services, the conclusion of the sale will further reduce our debt, strengthen our balance sheet, and allow us to focus on our core businesses."
"We are pleased to have completed this transaction and look forward to providing clean, efficient and reliable water and wastewater services to PUMC customers across North America," said Rebecca P. Mark, Chairman & CEO of Azurix.
Philip Services established Philip Utilities in 1994 as the first Canadian company to participate in the North American market for water and wastewater utilities management services. Since 1994, Philip Utilities has expanded to become a leading integrated provider of water and wastewater services with 18 municipal and industrial utilities management contracts throughout North America. Philip Utilities provides long-term operating and facilities management services for the operation and maintenance of water and wastewater facilities and also specializes in engineering and contract operations, residuals management as well as underground infrastructure development.
Philip Services is an integrated metals recovery and industrial services company with operations throughout the United States, Canada and Europe. Philip provides ferrous and non-ferrous processing, together with diversified industrial outsourcing services, to all major industry sectors.
Contact: Philip Services Corp. Lynda Kuhn, 905/540-6788/6789 905/540-6658