Tembec extends revolver to 2017, lowers commitments to C$175 million

By Toni Weeks

San Luis Obispo, Calif., March 25 - Tembec Inc. amended its asset-based secured revolving credit facility, extending the maturity date by one year to March 4, 2017.

Access to the credit facility has now been fully restored, according to a press release. In addition, the Supreme Court of Canada's recent decision regarding the Indalex case has resolved potential security issues of the company's Ontario collateral. The company's December quarterly disclosure documents state that Tembec's total liquidity of C$91 million included C$22 million of unused revolving credit facility. Under the terms of the amended agreement, the C$22 million of availability is confirmed, subject to normal monthly fluctuations in trade receivable and inventory levels, according to the release.

The company also negotiated a reduction of the aggregate revolving loan commitments to C$175 million from C$200 million due to a reduction in its number of operating mills.

Montreal-based Tembec manufacturers forest products, including lumber, pulp, paper and specialty cellulose.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.