Business
Western Forest Products Redeems U.S. $221 million 15% Senior Secured Notes with New Term Financing
Western Forest Products Redeems U.S. $221 million 15% Senior Secured Notes with New Term Financing.
About this update from Western Forest Products Inc.
[{"type":"text","content":"\n\n\n\n\nTSX: WEF\n\nDUNCAN, BC, March 10 /CNW/ - Western Forest Products Inc. (TSX: WEF)\ntoday announced that it has redeemed in full its US $221 million 15% Secured\nBonds together with all outstanding interest. The redemption was funded from\nthe proceeds of a secured term-loan arranged by Tricap Management Limited\nthrough its designated lender, Brookfield Bridge Lending Fund Inc. The loan\nconsists of two term facilities, a four year US$187.5 million facility, and a\none-year Cdn $90 million facility, which may be extended for a second year at\nthe option of Western. The secured loan is non-amortizing and is pre-payable,\nin whole or in part, at any time.\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 20 countries worldwide.\nFollowing the completion of Western's previously announced acquisitions of\nCascadia Forest Products Ltd. and Tree Farm License 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 an AAC of approximately 7.7 million cubic meters and lumber\ncapacity in excess of 1.5 billion board feet. Additional information on the\nacquisition of Cascadia Forest Products and the associated financing can be\nfound in Western's final prospectus dated January 31, 2006. The closure of the\nSquamish pulp mill on March 9, 2006 also resulted in the Company exiting the\npulp business.\n\nForward Looking Statements\nThis press release contains statements that are forward-looking in\nnature. Those statements appear in a number of places herein and include\nstatements regarding the intent, belief or current expectations of Western,\nprimarily with respect to market and general economic conditions, future\ncosts, expenditures, available harvest...