Enerflex Ltd. Announces Redemption of 9.00% Senior Notes Due 2027

Rhea-AI Summary

Enerflex (TSX: EFX, NYSE: EFXT) announced on December 11, 2025 that it has completed the redemption of all its 9.00% Senior Secured Notes due 2027. The Redemption was funded with proceeds from a private offering by its direct wholly owned subsidiary of $400 million 6.875% senior notes due 2031 issued at par, together with availability under the company’s secured revolving credit facility.

The 2031 Notes are guaranteed on a senior unsecured basis by the company and have not been registered under the U.S. Securities Act or state securities laws; the company does not intend to register them.

Positive

• Redeemed all 9.00% notes due 2027
• Raised $400 million via 6.875% notes due 2031 issued at par, extending maturity

Negative

• 2031 Notes are unregistered and the company does not intend to register them, limiting resale
• Redemption required use of secured revolving credit availability, increasing reliance on credit facility

Key Figures

New notes offering $400 million 6.875% notes Senior unsecured notes due 2031 used to fund redemption

Redeemed notes coupon 9.00% Senior secured notes due 2027 fully redeemed

Redemption price 102.25% Conditional redemption price for 2027 notes from Dec 1 plan

Q3 2025 revenue $777M Third quarter 2025 financial results

Q3 2025 adjusted EBITDA $145M Record adjusted EBITDA in Q3 2025

Q3 2025 ROCE 16.9% Return on capital employed in Q3 2025

Net debt $584M Net debt at end of Q3 2025

Leverage ratio 1.2x Bank-adjusted net debt/EBITDA at Q3 2025

Market Reality Check

$15.64 Last Close

Volume Volume 428,231 is below the 20-day average of 557,788 (relative volume 0.77x). normal

Technical Price 15.64 is trading above the 200-day moving average of 9.27 and near the 52-week high of 15.655.

Peers on Argus

EFXT was up 2.56% while peers showed mixed moves: MRC up 10.59%, WTTR up 4.96%, FLOC up 3.06%, and INVX/XPRO roughly flat. This points to a company-specific reaction rather than a broad equipment & services move.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 01	Debt offering pricing	Neutral	-0.2%	Pricing of $400M 6.875% senior unsecured notes due 2031.
Dec 01	Debt offering launch	Neutral	-0.2%	Launch of $400M senior unsecured notes to redeem 9.00% 2027 notes.
Nov 24	Board appointment	Positive	+1.4%	Appointment of Céline Gerson as new independent director.
Nov 06	Earnings & dividend	Positive	+5.7%	Strong Q3 2025 results and a 13% dividend increase.
Oct 06	Earnings timing	Neutral	+1.3%	Announcement of timing for Q3 2025 results release and call.

Pattern Detected

Recent news, especially strong Q3 results and capital structure actions, generally saw aligned price responses, with offerings having only a modest impact.

Recent Company History

This announcement completes Enerflex’s previously signaled plan to refinance its 9.00% senior secured notes due 2027 using new 6.875% senior notes due 2031 and its revolving credit facility. Earlier in Q3 2025, Enerflex reported revenue of $777M, record adjusted EBITDA of $145M, and raised its dividend by 13%, which drew a notably positive share response. A new independent director and prior timing/earnings updates also aligned with modestly positive trading, while the December notes offering produced only a small move.

Market Pulse Summary

This announcement confirms Enerflex has executed its plan to redeem all 9.00% senior secured notes due 2027, funded by a private offering of $400 million in 6.875% senior notes due 2031 and its revolving credit facility. It follows strong Q3 2025 results, including revenue of $777M, record adjusted EBITDA of $145M, and bank-adjusted net debt/EBITDA of 1.2x. Investors may watch future filings and earnings to see how the new debt stack and interest costs interact with cash flow and capital allocation decisions.

Key Terms

senior secured notes financial

"all of its 9.00% Senior Secured Notes due 2027 (the “Redemption”)."

Senior secured notes are a type of loan that a company borrows by issuing bonds, which are like IOUs. They are called "secured" because the company promises to give lenders specific assets, like property or equipment, if it can't pay back the loan. This makes them safer for investors and often means the company pays lower interest rates.

senior notes financial

"private offering of $400 million in aggregate principal amount of 6.875% senior notes due 2031"

Senior notes are a type of loan that a company borrows from investors, promising to pay it back with interest. They are called "senior" because in case the company faces financial trouble, these lenders are paid back before others. This makes senior notes safer for investors compared to other types of loans or bonds.

revolving credit facility financial

"along with availability under the Company’s secured revolving credit facility."

A revolving credit facility is a type of loan that a business can borrow from whenever it needs money, up to a set limit. It’s like having a credit card for companies—allowing them to borrow, pay back, and borrow again as needed, providing flexibility for managing cash flow or funding short-term expenses.

Securities Act regulatory

"not been registered under the Securities Act, any state securities laws"

A securities act is a law that governs the offering, sale and disclosure of stocks, bonds and other investment products to the public. It requires companies to provide clear, truthful information—like a product label for an investment—so buyers can understand risks and value before they invest. For investors, these rules reduce fraud, promote transparency, and help ensure fair access to market information.

AI-generated analysis. Not financial advice.

CALGARY, Alberta, Dec. 11, 2025 (GLOBE NEWSWIRE) -- Enerflex Ltd. (TSX: EFX) (NYSE: EFXT) (“Enerflex” or the “Company”) today announced that it has completed the previously announced redemption of all of its 9.00% Senior Secured Notes due 2027 (the “Redemption”). The Redemption was facilitated using proceeds raised by Enerflex Inc., a direct, wholly owned subsidiary of Enerflex, under its previously announced private offering of $400 million in aggregate principal amount of 6.875% senior notes due 2031 (the “2031 Notes”) along with availability under the Company’s secured revolving credit facility. The 2031 Notes were issued at par and guaranteed on a senior unsecured basis by the Company.

The 2031 Notes and the related guarantees have not been registered under the Securities Act, any state securities laws or the laws of any other jurisdiction, and Enerflex does not intend to register the 2031 Notes or the related guarantees. Any offer or sale of the 2031 Notes must be exempt from or not subject to the registration requirements of the Securities Act and applicable state laws and similar requirements under the applicable laws of the provinces of Canada and other jurisdictions where the 2031 Notes may be offered or sold.

For investor and media enquiries, contact:

Paul Mahoney
President and Chief Executive Officer
E-mail: PMahoney@enerflex.com

Preet S. Dhindsa
Senior Vice President and Chief Financial Officer
E-mail: PDhindsa@enerflex.com

Jeff Fetterly
Vice President, Corporate Development and Capital Markets
E-mail: JFetterly@enerflex.com

FAQ

What did Enerflex announce on December 11, 2025 regarding its 2027 notes (EFXT)?

Enerflex completed the redemption of all its 9.00% Senior Secured Notes due 2027.

How did Enerflex fund the redemption of the 2027 notes (EFXT)?

The company used proceeds from a private offering of $400 million 6.875% notes due 2031 issued at par and availability under its secured revolving credit facility.

What are the coupon and maturity of the new Enerflex notes issued in 2025 (EFXT)?

The new notes carry a 6.875% coupon and mature in 2031.

Are the 2031 notes issued by Enerflex registered under the U.S. Securities Act (EFXT)?

No. The 2031 Notes and related guarantees have not been registered and the company does not intend to register them.

Who issued and guaranteed the new 2031 notes used to redeem the 2027 notes (EFXT)?

Enerflex Inc., a direct wholly owned subsidiary, issued the notes; they are guaranteed on a senior unsecured basis by Enerflex.