Tembec amends and extends its asset-based secured revolving credit facility
MONTREAL, June 26, 2014 /CNW Telbec/ - Tembec (the "Company") today announced that it has successfully amended its asset-based secured revolving credit facility (the "ABL Facility") with GE Capital and CIBC (the "Lenders). The amending agreement provides the Company with additional flexibility through a $15 million reduction in ABL reserves which increases availability by the same amount. The $15 million reduction in reserves will be applicable for a one-year period. Also, the term of the current ABL Facility will be extended for one year to March, 2018.
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 3,500 employees and annual sales of approximately $1.6 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