Business
Western Forest Products Inc. - U.S. $221 million 15% Senior Secured Notes to be Redeemed
Western Forest Products Inc. - U.S. $221 million 15% Senior Secured Notes to be Redeemed.
About this update from Western Forest Products Inc.
[{"type":"text","content":"\n\n\n\n\nTSX: WEF\n\nVANCOUVER, Feb. 6 /CNW/ - Western Forest Products (TSX: WEF) today\nannounced that it has instructed the trustee for its US$221 million 15%\nSecured Bonds to issue a Redemption Notice to all bond holders. The Redemption\nNotice is expected to be issued on February 8, 2006 and will result in the\nexisting senior secured notes together with all accrued interest being\nredeemed on March 10, 2006 with the proceeds of a secured loan arranged by\nTricap Management Limited through its designated lender, Brookfield Bridge\nLending Fund Inc. The loan consists of two term facilities, a four year\nUS$187.5 million facility, and a one-year Cdn $90 million facility, which may\nbe extended for a second year at the option of Western. The secured loan is\nnon-amortizing and is pre-payable, in whole or in part, at any time. Interest\non amounts drawn under the US facility will be charged at the floating US \none-month LIBOR rate plus 8.15%. Interest on the Canadian facility will be\ncharged at the Canadian prime rate plus 5.25%.\nPursuant to the terms of the existing senior secured bond indenture,\nWestern is required to provide notice to bondholders at least 30 days prior to\nthe redemption date. Since Western is redeeming the bonds, it did not obtain a\nrating for the existing senior secured notes by December 31, 2005 as required\nby the terms of the existing senior secured bond indenture.\n\nWestern Forest Products\nWestern is an integrated Canadian forest products company and currently\nthe second largest coastal woodland operator in British Columbia. Principal\nactivities conducted by Western and its subsidiaries include timber\nharvesting, reforestation, sawmilling logs into lumber and wood chips, and\nvalue-added remanufacturing. Over 95% of Western's logging is conducted on\ngovernment owned timberlands in British Columbia. All of Western's operations,\nemployees and corporate facilities are located in the coastal region of\nBritish Columbia and its products are sold in over 25 countries worldwide.\nFollowing the completion of Western's previously announced acquisitions of\nCascadia Forest Products Ltd. and Tree Farm Licence 37, both of which are\nsubject to regulatory approval and expected to close in the first quarter of\n2006, Western expects to be the largest Coastal woodland operator and lumber\nproducer with a...