Conifex Timber Inc. has received syndication lenders take-up for a new $130 million secured revolving credit facility being arranged by a major U.S. bank to fund the modernization and restart of its sawmill complex in El Dorado, Arkansas, as well as to replace and discharge its existing revolving credit facilities and senior notes.
The Credit Facility will have a term of 5 years and be secured by substantially all of Conifex's assets (other than its bioenergy segment assets), and is scheduled to close on or about January 6, 2017.
Conifex had previously announced that it was working towards finalizing capital and financing plans to reconstruct its currently idled sawmill complex in El Dorado, Arkansas.
Ken Shields, Chairman and CEO, stated: "This financing is a key element of our planned expansion into the U. S. South to achieve revenue diversification and reduce cash flow volatility in our lumber segment."
Conifex Timber Inc. 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.
