Bank of America and Wells Fargo provided Northwest Hardwoods with an asset-based loan during the company’s financial restructuring process and emergence from Chapter 11.

Through its restructuring, Northwest Hardwoods reduced its long-term debt obligations by nearly $270 million while also reducing its debt service obligations.

“This is an important milestone for Northwest Hardwoods and marks the beginning of a new and exciting phase for the company,” Nathan Jeppson, CEO of Northwest Hardwoods, said. “The successful completion of this restructuring process has allowed us to significantly reduce our cost structure and positions us to invest meaningfully in our long-term growth. Today’s news helps us advance our mission to unleash the potential of the most environmentally sound hardwood products across the globe.”

Northwood Hardwoods’ financial restructuring included collaborative discussions among the company and its key prepetition stakeholders. Pursuant to the company’s pre-packaged Chapter 11 plan, its roughly $379 million of secured notes were converted into $110 million of secured exit takeback term loans and 99% of the equity in reorganized Northwest Hardwoods (subject to dilution). The remainder of the reorganized equity is reserved for the company’s existing equity holders in exchange for their support throughout the process.

The ad hoc group of holders of the company’s prepetition secured notes, encompassing more than 90% of the company’s secured notes, has likewise expressed its satisfaction with the completion of the restructuring process.

“Today’s news is welcome for all of Northwest Hardwoods’ stakeholders and investors. We believe strongly in the long-term growth of Northwest Hardwoods, its incredible employees and the strength of its management team. We look forward to a successful future for Northwest Hardwoods,” a representative from the ad hoc group said.

Gibson, Dunn & Crutcher and Young Conaway Stargatt & Taylor served as legal counsel to Northwest Hardwoods and Huron Consulting Group served as financial advisor. The ad hoc group was represented by Willkie Farr & Gallagher and Pachulski Stang Ziehl & Jones as legal counsel and Guggenheim Securities as financial advisor.

Northwest Hardwoods is a U.S. manufacturer of North American hardwood lumber.