Norbord Inc. has renewed its committed revolving bank lines (revolvers) on substantially the same terms and conditions. The maturity date has been extended to May 2022 and, to further strengthen liquidity, the aggregate commitment has been increased by $55 million to $300 million.
Pro forma for this renewal, Norbord’s liquidity would have been $302 million as at the end of the 1Q 2020, consisting of $30 million in cash and $272 million in unused revolvers. Norbord continues to have comfortable headroom against the two financial covenants governing access to its revolvers (net debt to total capitalization and tangible net worth), as detailed in its 1Q earnings release dated May 6, 2020.
“In this environment of economic uncertainty from the COVID-19 pandemic, safety and flexibility are paramount,” said Peter Wijnbergen, Norbord’s President & CEO. “Our current operating configuration gives us the flexibility to adjust our production volume up and down to match production with customer demand. The renewal of our revolvers augments our existing strong liquidity and further protects Norbord’s balance sheet flexibility.”
Norbord Inc. is a leading global manufacturer of wood-based panels and the world’s largest producer of oriented strand board (OSB). In addition to OSB, Norbord manufactures particleboard, medium density fibreboard and related value-added products.
