Spark Power Provides Update on Filing Date of First Quarter Financial Statements and 2021 First Quarter Conference Call
Spark Power Group Inc. announced a delay in filing its first-quarter results for the period ended March 31, 2021, now scheduled for May 17, 2021. This delay allows the inclusion of details regarding the Credit Facility Restructuring with its lender, aimed at extending the term and increasing borrowing capacity. The company has received a waiver for non-compliance with two financial covenants as of March 31, 2021, impacting its current debt classification. A conference call for investors is set for May 18, 2021.
- Plans to restructure existing credit facility for increased flexibility.
- Received waiver for non-compliance with financial covenants, allowing continued negotiations.
- Delay in financial filings could signal underlying financial instability.
- Non-compliance with financial covenants may indicate financial weaknesses.
OAKVILLE, ON / ACCESSWIRE / May 12, 2021 / Spark Power Group Inc. (TSX:SPG), parent company of Spark Power Corp. ("Spark Power" or the "Company"), announced today that it will delay the filing of its results for the first quarter ended March 31, 2021 and its conference call for investors and analysts to discuss the results of its first quarter. Spark now plans to release its first quarter results before markets open on Monday, May 17, 2021 and to host its conference call for investors and analysts on Tuesday, May 18, 2021.
The Company also announced today that it is in negotiations with its existing lender to restructure the existing credit facility of the Company (the "Credit Facility") to, among other things, extend the term and the amortization period, increase the borrowing capacity in its operating line and term facilities and to make changes to the existing financial covenants to provide the Company with increased flexibility (the "Credit Facility Restructuring"). In connection with the negotiations of the Credit Facility Restructuring, the Company has received a waiver from its lender for not being in compliance with two of the three financial covenants in the Credit Facility as of March 31, 2021. Specifically, the Company did not meet the required minimum fixed charge coverage ratio of 1.25:1.00 and the maximum senior debt to EBITDA ratio of less than 3.50:1.00. As a result, the Company's non-revolving term loan and revolving acquisition line have been classified as current debt at March 31, 2021.
The filing of the Company's results for the first quarter and investors and analysts call have been delayed to facilitate including in such results the details of the Credit Facility Restructuring and the impact of the waiver received from the Company's lender.
Conference Call Details:
DATE: Tuesday, May 18, 2021
TIME: 8:30 a.m. Eastern Time
DIAL-IN NUMBER: 1-888-506-0062 or International 1-973-528-0011
CONFERENCE ID: 40985
WEBCAST: https://www.webcaster4.com/Webcast/Page/2400/40985
It is suggested that those wishing to access the webcast log in approximately 10 minutes in advance of the start time to register, download, and install any necessary audio software. For those unable to listen to the live webcast, an archive will be available shortly after the conclusion of the conference call for a period of 90 days.
About Spark Power Group Inc.
Spark Power is a leading independent provider of end-to-end electrical services, operations and maintenance services, and energy sustainability solutions to the industrial, commercial, utility, and renewable asset markets in North America. We work to earn the right to be our customers' Trusted Partner in Power™. Our highly skilled and dedicated people, located in the communities we serve, combined with our knowledge of the power industry, technology expertise, and commitment to safety, ensures we deliver the right solutions that keep our customers' operations up and running today and better equipped for tomorrow. Learn more at www.sparkpowercorp.com
Investor and Regulatory Inquiries:
Dan Ardila, Executive Vice President & Chief Financial Officer
dardila@sparkpowercorp.com
+1 (905) 829-3336 x127
Media Inquiries:
Kim Samlall, Director, Marketing Communications
media@sparkpowercorp.com
+1 (905) 829-3336 x185
Forward-Looking Statements
This news release may contain forward-looking statements (within the meaning of applicable securities laws) which reflect Spark Power's current expectations regarding future events. Forward-looking statements are identified by words such as "believe", "anticipate", "project", "expect", "intend", "plan", "will", "may", "estimate" and other similar expressions. The forward-looking statements in this press release include statements regarding the status of negotiations and anticipated changes contemplated by the Credit Facility Restructuring, which may not ultimately be agreed to by the parties or implemented as described, or at all, and other statements that are not historical fact. The forward-looking statements in this news release are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Several factors could cause actual results to differ materially from the results discussed in the forward-looking statements. Such factors include, among others general developments, market and industry conditions. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, these forward-looking statements are made as of the date of this news release and, except as expressly required by applicable law, Spark Power assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
SOURCE: Spark Power Group Inc.
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FAQ
What is the reason for Spark Power Group Inc.'s delay in Q1 financial results for 2021?
What are the new dates for Spark Power's financial results and conference call?
What financial covenants did Spark Power Group Inc. fail to meet?
How does the Credit Facility Restructuring affect Spark Power's borrowing capacity?
What impact does the waiver from the lender have on Spark Power Group Inc.?
