Tembec amends and extends maturity of its asset-based secured revolving credit facility
MONTREAL, March 25, 2013 /CNW Telbec/ - Tembec (the "Company") announced today that it has agreed to amend and extend its asset-based secured revolving credit facility. The maturity date of the facility was extended by one year and is now set to expire on March 4, 2017.
As a result of this amendment, access to the credit facility in accordance with its terms is fully restored. The recent decision by the Supreme Court of Canada regarding the "Indalex" case has led to a satisfactory resolution of potential security issues regarding the Company's Ontario collateral. In its December 2012 quarterly disclosure documents, the Company noted that its total liquidity of $91 million included $22 million of unused revolving credit availability. Under the terms of the amended agreement, the $22 million of availability is confirmed, subject to normal monthly fluctuations in trade receivable and inventory levels.
The Company also negotiated a reduction of the aggregate revolving loan commitments from $200 million to $175 million and related adjustments to certain thresholds due to a reduction in the number of mills it operates.
Tembec is a manufacturer of forest products - lumber, pulp, paper and specialty cellulose - and a global leader in sustainable forest management practices. Principal operations are in Canada and France. Tembec has some 3,700 employees and annual sales of approximately $2 billion. Tembec is listed on the TSX (TMB).
This press release includes "forward-looking statements" within the meaning of securities laws. Such statements relate, without limitation, to the Company's or management's objectives, projections, estimates, expectations or predictions of the future and can be identified by words such as "may", "will", "could", "anticipate", "estimate", "expect" and "project", the negative or variations thereof, and expressions of similar nature. Forward-looking statements are based on certain assumptions and analyses made by the Company in light of its experience, information available to it and its perception of future developments. Such statements are subject to a number of risks and uncertainties, including, but not limited to, changes in foreign exchange rates, product selling prices, raw material and operating costs and other factors identified in the Company's periodic filings with securities regulatory authorities. Many of these risks are beyond the control of the Company and, therefore, may cause actual actions or results to materially differ from those expressed or implied herein. The forward-looking statements contained herein reflect the Company's expectations as of the date hereof and are subject to change after such date. The Company disclaims any intention to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable securities legislation.
SOURCE: TEMBECFor further information:
Executive Vice President, Finance and Chief Financial Officer
Tel.: 819 627-4268
Vice President, Human Resources and Corporate Affairs
Tel.: 416 775-2819