VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 07/30/15 -- Conifex Timber Inc. ("Conifex") (TSX: CFF) announced today the term conversion of the secured project financing facility (the "Project Financing") used to develop Conifex Power Limited Partnership's ("CP Partnership") recently completed 36 MW biomass power plant in Mackenzie, British Columbia (the "Power Generation Project"). CP Partnership is a wholly-owned subsidiary of Conifex. As a result of the term conversion, the construction loan portion of the Project Financing has matured and been converted into a term loan that matures on December 1, 2019 (the "Term Loan") and has an 18 year amortization schedule. The Project Financing continues to include a letter of credit facility and a $1.75 million revolving operating facility until the maturity date of the Term Loan.
The Term Loan consists of a floating rate tranche and a fixed rate tranche. Interest rates on the floating rate tranche borrowings are based on either banker's acceptances or the Canadian chartered bank prime rate, at CP Partnership's option, plus an applicable margin. The fixed rate tranche bears interest at a rate largely consistent with the floating rate tranche. Concurrent with the Project Financing, CP Partnership entered into interest rate swap transactions with the lead arranger to swap the interest rates on the floating rate tranche of the Term Loan to fixed interest rates. The Project Financing is primarily secured by a first priority security interest on CP Partnership's existing and after acquired bioenergy assets.
About Conifex Timber Inc.
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, British Columbia.
Forward-Looking Statements
Certain statements in this news release may constitute "forward-looking statements". Forward-looking statements are statements that address or discuss activities, events or developments that Conifex expects or anticipates may occur in the future. When used in this news release, words such as "estimates", "expects", "plans", "anticipates", "projects", "will", "believes", "intends" "should", "could", "may" and other similar terminology are intended to identify such forward-looking statements. Forward-looking statements reflect the current expectations and beliefs of Conifex's management. Because forward-looking statements involve known and unknown risks, uncertainties and other factors, actual results, performance or achievements of Conifex or industry may be materially different from those implied by such forward-looking statements. Examples of such forward-looking information that may be contained in this news release include the availability of the letter of credit facility and revolving operating facility under the Project Financing. Forward-looking statements involve significant uncertainties, should not be read as a guarantee of future performance or results, and will not necessarily be an accurate indication of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including, without limitation: any change in the size or availability of the letter of credit facility and revolving operating facility under the Project Financing and other risk factors described in Conifex's 2014 annual information form, available on SEDAR at www.sedar.com. These risks, as well as others, could cause actual results and events to vary significantly. Accordingly, readers should exercise caution in relying upon forward-looking statements and Conifex undertakes no obligation to publicly revise them to reflect subsequent events or circumstances, except as required by law.
Contacts:
Conifex Timber Inc.
Yuri Lewis
Chief Financial Officer
(778) 331-8687
