MONTREAL, July 19 2010 /CNW Telbec/ - Société générale de financement du Québec (SGF) announces that it has contributed $78 million dollars as part of a global refinancing agreement totaling approximately $190 M for Fibrek inc. (TSX: FBK), whose head office is located in Longueuil, Québec. The objective of this loan is to improve the company's balance sheet and, mostly, ensure the execution if its long-term development plan. This commitment takes the form of a five-year guaranteed term loan bearing an 8.25% interest rate.
Fibrek, formerly known as SFK Pulp, is a leader in the production and distribution of high-quality virgin and recycled kraft pulp and operates three plants located in Saint-Félicien (Québec), Fairmont (West Virginia) and Menominee (Michigan). The Saint-Félicien plant provides Northern Bleached Softwood Kraft pulp (known as NBSK pulp) to various paper industry sectors in Canada, the United States and Europe for the production of specialized products.
The Saint-Félicien plant, which uses the most softwood chips in Québec, is an important link in the forest sector's value chain. "With our investment and that of our partners in this project, we will allow the company to significantly reduce its debt ratio, to yield an improved financial performance and to maintain, and even increase, the value of the economic fallbacks in two major regions in Québec," said Pierre Shedleur, SGF President and General Manager.
Société générale de financement du Québec (sgfqc.com), an industrial and financial holding company, has a mission to carry out economic development projects, particularly in the industrial sector, in cooperation with partners and in compliance with accepted profitability requirements and with the economic development policy of the Québec government. As part of its new mandate, SGF is authorized by the Québec government to go beyond its traditional role as an equity investor by offering complementary solutions, such as loans, debentures or preferred shares.
SOURCE SOCIETE GENERALE DE FINANCEMENT DU QUEBEC
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