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CNQ - Canadian Natural Resources News Story

C$25.26 0.9  3.7%

Last Trade - 2:56pm

Sector
Energy
Size
Large Cap
Market Cap £16.55bn
Enterprise Value £29.85bn
Revenue £12.72bn
Position in Universe 26th / 2677

UPDATE 1-Canada's emergency loans for big companies have no cap but many limits

Wed 20th May, 2020 5:14pm
(Adds comments by Prime Minister Trudeau, Finance Minister Morneau, details on loans) By Steve Scherer OTTAWA, May 20 (Reuters) - There will be no cap on the size of Canada's emergency loans to large companies harmed by the coronavirus pandemic but there will be multiple restrictions, including one that gives taxpayers a chance to share in the upside of the borrower's potential recovery, the government said on Wednesday. "We are not offering companies a bailout," Prime Minister Justin Trudeau told his daily news conference. The aim is to help them "weather this storm" and preserve Canadian jobs as a "lender of last resort," Trudeau said. The so-called Large Employer Emergency Financing Facility (LEEFF) launched last week is accepting applications as of Wednesday from all companies, except those in finance, with an annual revenue of C$300 million ($216 million) or more that are seeking financing of at least C$60 million. urn:newsml:reuters.com:*:nL1N2CT0LJ "We'll be asking publicly traded companies to issue warrants that provide the option to purchase equity or receive cash equivalents totaling 15% of the amount received," Finance Minister Bill Morneau told reporters, so the state can "share in any upside borrowers see in the recovery to come." Restrictions aimed at slowing the pandemic have clobbered companies in Canada and worldwide. Morneau said last week that airlines, energy companies and large retailers were the types of companies that may need the loans. Air Canada AC.TO said last week it was cutting its workforce by up to 60%. Canada's oil industry is facing its worst crisis in 40 years. urn:newsml:reuters.com:*:nL2N2C31VY Among the loan requirements are that companies have "environmental sustainability" among their goals. There will be restrictions https://www.cdev.gc.ca/leeff-factsheet on dividends, share buybacks, executive pay and tax transparency, Trudeau added. Also on Wednesday, the government said it would provide forgivable loans to qualifying commercial property owners to cover half of monthly rent payments from small business tenants struggling in April, May and June. ($1 = 1.3879 Canadian dollars) <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Govt to be lender of last resort for big Canadian firms like airlines, oil producers urn:newsml:reuters.com:*:nL1N2CT0LJ ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Steve Scherer; Editing by Will Dunham) ((steve.scherer@thomsonreuters.com; +1-613-235-6745;))
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