GreenFirst Announces Release of Pension Surplus and $19 Million Backstop to Strengthen Liquidity

Executive Summary

• GreenFirst received regulatory approval to retain an estimated $10.7 million surplus from its wound‑up defined benefit pension plan.
• The company secured a $19 million backstop on its existing standby letters of credit through Export Development Canada’s APSG program, enhancing working‑capital access.
• Both actions improve GreenFirst’s liquidity and financial flexibility to support ongoing operations and strategic initiatives.

Key Details

• Pension Surplus Distribution: FSRA approved the distribution of surplus assets from the closed defined benefit pension plan for Kapuskasing Organized Employees; GreenFirst will retain an estimated $10.7 million after member distributions, investment performance adjustments, and wind‑up expenses.
• Backstop on Standby Letters of Credit: Export Development Canada provided a $19 million backstop under its Account Performance Security Guarantee (APSG) program for GreenFirst’s existing standby letters of credit, aimed at maintaining access to working capital.
• Financial Impact: The retained pension surplus and the $19 million credit backstop together increase GreenFirst’s liquidity position, providing additional financial flexibility for operations and strategic initiatives.
• CEO Comment: “We appreciate EDC’s support through the APSG program… this arrangement, together with the retained pension surplus, provides additional financial flexibility as we continue to manage our operations and serve our customers.” – Joël Fournier, CEO

Notable Quotes

• “We appreciate EDC’s support through the APSG program,” said Joël Fournier, Chief Executive Officer of GreenFirst. “This arrangement, together with the retained pension surplus, provides additional financial flexibility as we continue to manage our operations and serve our customers.”