Prudential Capital Provides Interfor Debt Financing
Interfor announced it priced a $100 million long-term debt financing with Prudential Capital Group.
The senior secured notes will carry an annual interest rate of 4.17% and have a final maturity in 2026. The financing is expected to close on March 16, 2015, and the proceeds will be used to reduce the drawings under the company’s bank credit facilities.
As previously disclosed, the company expects to close the acquisition of four sawmills from Simpson Lumber Company on March 1, 2015, with a portion of the acquisition price initially financed from funds currently available under its existing bank credit facilities.
“This transaction will increase our long-term debt to a total of US$200 million, and significantly extend our debt maturities at an extremely attractive interest rate,” said John Horning, EVP and CFO at Interfor. “Following completion of this financing, Interfor’s total long-term debt will have an average interest rate of 4.17% with maturities that are evenly spread across the years 2021-2026.”