Western Forest Products Inc. refinances term-debt
March 17, 2008 By Pulp & Paper Canada
DUNCAN, BC – Western Forest Products Inc. (TSX:WEF) announced March 13 an agreement for a new Cdn$175 million term loan facility, comprising a Cdn$75 million revolver due in three years and Cdn$100 million term loan repayable within 18 months.
The financing is being provided by GE Corporate Lending, Canadian Imperial Bank of Commerce and The Bank of Nova Scotia. Proceeds will retire the Company’s existing term debt facilities of US$72.9 million and Cdn$101.8 million provided by the Brookfield Bridge Lending Fund, a lender related to Tricap Management Ltd., the Company’s largest shareholder. The new financing will have a lower overall interest cost albeit with additional financial covenants when compared to the previous facilities. The transaction is expected to close shortly.
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