Taiga Building Products continues to defer interest on 14% notes

New York, Nov. 13 - Taiga Building Products Ltd. said it has again decided to defer the interest payment on its 14% subordinated notes due 2020.

The company previously deferred the payment due April 15 on the notes. With the latest deferral, covering March through September, an additional $9.5 million was accumulated.

At its previous announcement on April 9, Taiga said it is permitted to defer the coupon because its debt service coverage ratio has crossed the threshold specified in the note indenture, based on its unaudited March 31 financial statements.

Deferral will save $1.3 million in cash per month, it said at the time.

Taiga added that it expects to continue deferring the payments as long as it is permitted to do so.

Unpaid interest will accrue and will also benefit from a further 14% interest on interest.

Taiga Building Products is a Burnaby, B.C., distributor of building products.

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