The Loan Facility will consist of a construction loan which will mature approximately 14 months from the closing date and convert into an amortized term loan having a term of 5 years once the conditions to conversion are satisfied, including substantial completion of construction of the Power Project. The balance of the Project Financing will be in the form of a letter of credit facility primarily to secure certain obligations of Conifex Power under its existing load displacement agreement and a $1.75 million revolving operating facility.
Ken Shields, CEO of Conifex, commented: "This project financing paves the way for us to complete the construction and commissioning of our green power generation project. Coupled with our recently announced $30 million note financing to assist in funding the modernization and upgrading of our Mackenzie sawmill, we now have the financial resources to further our objective of making the Mackenzie site world-class in terms of scale, revenue diversity, and cost-competitiveness."
The Project Financing will be subject to customary closing conditions for a project financing of this type, including, among others completion of definitive documentation, which shall contain customary representations, warranties and covenants.
About Conifex Timber Inc. and its subsidiaries' primary business currently includes timber harvesting, reforestation, forest management, and the manufacture, sale and distribution of dimension lumber.