MONTREAL, Nov. 18, 2015 /CNW Telbec/ - Tembec announced it has entered into a new asset-based secured revolving credit facility ("New ABL Facility") which consists of a $150 million revolving credit facility ("Revolving Facility") with Wells Fargo Capital Finance Corporation Canada, as administrative agent, and PNC Financial Bank, National Association as syndication agent, and a US $ 62 million "first-in, last-out" term loan ("FILO Facility"). The New ABL Facility replaces the Company's existing $175 million revolving credit facility ("Existing Facility").
The Revolving Facility will expire on November 18, 2020, provided several conditions are met, including the repayment of the FILO Facility prior to March 2, 2018, failing which the maturity would be accelerated to an earlier date, but no earlier than March 2, 2018. The Revolving Facility has a first priority charge over the receivables and inventories of the Company's Canadian and U.S. operations. The FILO Facility is secured by the same collateral as the Revolving Facility and ranks second in repayment priority relative to the Revolving Facility. The FILO Facility is also secured by a first priority charge on the fixed assets of one of the Company's U.S. subsidiaries.
The Company will use borrowings under the New ABL Facility to repay the Existing Facility and pay transaction fees and expenses. After giving effect to the refinancing, the Company's total liquidity (cash and available operating lines) will be approximately 112 million.
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 approximately 3,250 employees and annual sales of approximately $1.5 billion. Tembec is listed on the Toronto Stock Exchange (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.
For further information: Investor Contact: Michel J. Dumas, Executive Vice President, Finance and CFO, Tel: 819 627-4268, E-mail: [email protected]; Media Contact: Linda Coates, Vice President, Human Resources and Corporate Affairs, Tel.: 416 775-2819, E-mail: [email protected]