Conifex Timber Inc. announces a new credit facility, which consists of a $165 million term loan facility and a $60 million revolving credit facility with a term of five years. Availability under the revolving credit facility is determined by a borrowing base tied to eligible accounts receivable and inventory, as the company says in the press release received by Lesprom Network.
In addition to financing a part of the purchase price under the transaction, a portion of the new credit facility was utilized to pay and retire the company's existing credit facility.
The new credit facility is secured by substantially all of the assets of Conifex and its subsidiaries other than the Mackenzie power plant and Conifex's interest in a joint venture that holds a forest licence in British Columbia, Canada.
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.
