Conifex Timber Inc. announced that its wholly-owned subsidiary Conifex Power Limited Partnership completed a $70 million secured term loan with a syndicate of private lenders to refinance its existing loan. The loan has a 15 -year term, is secured by substantially all of the power segment assets and bears interest at arate of 6.10% per annum.
The loan is expected to be fully amortized over its 15-year term, which ends approximately 18 months before the remaining term of Conifex Power Limited Partnership’s Electricity Purchase Agreement with B.C. Hydro and Power Authority.
Upon the fulfillment of a requirement to fund a reserve account, the Company expects the free cash flow generated from the power project will be available for general corporate purposes.
The loan is non-recourse to the other operations of Conifex and its subsidiaries' primary business currently includes timber harvesting, reforestation, forest management, sawmilling logs into lumber and wood chips, and value added lumber finishing and distribution.
Conifex and its subsidiaries' primary business currently includes timber harvesting, reforestation, forest management, sawmilling logs into lumber and wood chips, and value added lumber finishing and distribution.
