Taiga Building to pay interest on deferred interest for 14% notes

By Angela McDaniels

Tacoma, Wash., Jan. 19 - Taiga Building Products Ltd. said that when it makes the next regular interest payment on its 14% subordinated notes due 2020, it will also pay interest on the interest it has deferred.

For each C$1,000 principal amount of notes, holders will receive C$11.6667 of regular interest plus C$1.1233 of interest on interest, according to a company news release.

The C$1.1233 payment represents interest accrued on interest for the month of January. The payments will be made on Feb. 15 to noteholders of record as of Jan. 29.

The company elected to defer interest on the notes from March 1, 2009 through Nov. 30. It said it will pay all of the deferred interest by Sept. 1, 2010.

The first payment of interest on interest - which accrues at 14% per year - was made on Jan. 15.

As previously reported, the company said in April 2009 that it was able to defer the coupon because its debt service coverage ratio has crossed the threshold specified in the note indenture.

Taiga distributes building products and is based in Burnaby, B.C.

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