Enerflex Ltd. completed the full redemption of its 9.00% Senior Secured Notes due 2027, extinguishing the entire $1.0 billion principal balance that had been outstanding since 2023. The company paid 102.25 % of the principal, amounting to $1.022 billion, plus accrued interest, using proceeds from a $400 million private offering of 6.875% senior notes due 2031 and a draw on its $800 million secured revolving credit facility.
The transaction reduces long‑term debt by $1.0 billion and lowers the bank‑adjusted net debt‑to‑EBITDA ratio from 1.3× at the end of Q3 2025 to 1.2×, bringing the company closer to its target range of 1.5×–2.0×. The lower‑cost 6.875% notes also cut annual interest expense by roughly $35 million, improving free cash flow and providing additional flexibility for future capital allocation.
Enerflex’s CFO Preet Dhindsa said the redemption reflects the company’s “ongoing focused efforts to reduce debt, lower net finance costs, and optimize the debt stack.” The move follows a partial redemption of $62.5 million in October 2024 and a recent extension of the revolving credit facility to July 2028, underscoring a disciplined deleveraging program.
Credit rating agencies have responded positively. Fitch upgraded Enerflex’s long‑term issuer default rating to “BB” from “BB‑” in November 2025, citing the debt reduction and improved liquidity. Moody’s raised the outlook to positive in July 2025 after the company’s net debt‑to‑EBITDA ratio fell below 1.5×.
The redemption positions Enerflex to accelerate shareholder returns once the target leverage range is achieved. Management indicated that a lower debt burden will free capital for dividends and share repurchases, aligning with the company’s long‑term value creation strategy.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.