Conifex gets financing to restart Arkansas mill
By Conifex Timber
Jan. 2, 2017 - Conifex Timber Inc. has received syndication lenders take-up for a new $130 million secured revolving credit facility being arranged by a major U.S. bank to fund the modernization and restart of its sawmill complex in El Dorado, Arkansas, as well as to replace and discharge its existing revolving credit facilities and senior notes.
By Conifex Timber
The Credit Facility will have a term of five years and be secured by substantially all of Conifex’s assets (other than its bioenergy segment assets), and is scheduled to close on or about Jan. 6, 2017.
Conifex had previously announced that it was working towards finalizing capital and financing plans to reconstruct its currently idled sawmill complex in El Dorado, Arkansas. Ken Shields, Chairman and CEO, stated: “This financing is a key element of our planned expansion into the U. S. South to achieve revenue diversification and reduce cash flow volatility in our lumber segment.”
The completion of the Credit Facility is subject to customary conditions, including finalization of definitive credit documentation and there can be no assurance that it will be completed on the terms currently contemplated, if at all.
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. Conifex’s lumber products are sold in the United States, Chinese, Canadian and Japanese markets. Conifex has expanded its operations to include bioenergy production following the commencement of commercial operations of its power generation facility at Mackenzie, B.C.