Jan. 2, 2018 – Fortress Paper Ltd. has reported that its wholly-owned subsidiary, Fortress Specialty Cellulose Inc. (FSC), has entered into a credit agreement with a private arm’s length lender, who will provide a secured revolving credit facility in the principal amount of up to US$5 million to FSC, subject to certain borrowing base restrictions.
The loan will mature on Dec. 30, 2020 and will accrue interest at a rate of LIBOR plus 5.75 per cent per annum.
The loan is secured by FSC’s wood fibre inventory located at the FSC mill, consisting of round wood, wood chips, and dissolving pulp and excluding certain non-eligible inventory.
FSC intends to use the proceeds of the loan for general corporate purposes.
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