CANEXUS CORP 6.5 PCT DEBS T.CUS.DB.D

Canexus Guidance for 2015

[HAWK37]

So, based on Ocean112's e-mail from yesterday (Ocean112 appears to be the unofficial spokesperson for Canexus, definitely an insider), Canexus is planning the following for 2015: 1. 2015E EBITDA of $91.5 million. Cash flow for the HCl business will decrease 20% to $21.5 million (that will help the sale of N Van). 2. NATO will have negative cash flow of $15 million in 2015 (who wouldn't pay $250 million for that business?). 3. Canexus has a $65 million capital program for 2015 which will be fully debt financed. 4. Canexus will end 2015 with $410 million in debt (not including the January dividend payment of $17 million). 5. Canexus will take its bank debt up to 4.5 times EBITDA, which will be at the limit of its covenants. What do they say about being in a hole? The first thing to do is to stop digging. Damn the torpedoes! RH