Methanex beancounters burn midnight oil

Methanex Corporation has further moved to protect its financial strength and flexibility, in light of New Zealand's looming gas gap and North America's methanol woes, by finalising a new $US250 million banking facility.
Methanex beancounters burn midnight oil Methanex beancounters burn midnight oil Methanex beancounters burn midnight oil Methanex beancounters burn midnight oil Methanex beancounters burn midnight oil

The Vancouver-headquartered corporation yesterday said it had finished arranging the $US250 million three-year revolving credit facility with a syndicate of banks. The new facility replaced the expiring $US291 million revolver. RBC Capital Markets was the lead arranger for the facility.

Methanex president Bruce Aitken said the corporation would maintain its "strong and flexible financial position" by utilising this latest credit facility.

With $US309 million of cash on hand at the end of the third quarter 2003, and the new credit facility, Methanex would have "the financial capacity to complete our capital spending programs, pursue new opportunities to enhance our strategic position in methanol and continue to deliver on our commitment to returning excess cash to shareholders," said Aitken.

Last month Methanex said it was accelerating the depreciation of its gas-strapped New Zealand and expensive Alberta methanol plants, from $US30 million annually to approximately $US130 million for the last 2003 quarter. And, earlier this week Methanex said it was moving to ensure its consolidated net worth (CNW), which approximated shareholder equity, should never be less than $US850 million.

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