OPTI Canada Unveils Proposed Financing Plan

OPTI Canada intends to offer by way of private placement US $425 million of First Lien Senior Secured Notes ("Notes"). The purpose of the private offering is to establish sufficient liquidity and flexibility for the company to proceed with its previously announced review of strategic alternatives process.

OPTI also announced that it had received aggregate commitments of approximately $159 million with respect to an amended and reduced revolving credit facility, which commitments are subject to the completion of the Notes offering. The amended credit facility is not expected to contain a covenant included in the existing facility based upon a ratio of indebtedness to earnings before interest, tax, depreciation and amortization (EBITDA). OPTI would retain the ability to increase the size of the new facility to $200 million by arranging future lending commitments.

Completion of these transactions is anticipated prior to the end of November 2009 but remains subject to a number of conditions, including agreement on final terms and conditions.
 

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