TimberWest amends loans, replacing C$325 million facility with C$250 million revolver

By Angela McDaniels

Tacoma, Wash., Feb. 11 - TimberWest Forest Corp. said its C$325 million credit facility has been replaced with a C$250 million revolving credit facility due February 2012.

The replacement is a result of proposed amendments to the loan agreement governing the company's existing credit facilities becoming effective, according to a company news release.

The new facility is secured and contains financial covenants, including a minimum EBITDA test, a tangible net worth test and a loan to book and market value test.

As previously reported, the amendments were negotiated in December to avoid future potential events of default.

The amendments were conditioned on the successful completion of a C$50 million rights offering and a C$100 million private placement, with some of those proceeds going toward the repayment of bank debt.

The rights offering and private placement settled Wednesday. The company said C$75 million of debt under its bank credit facilities will be repaid with the proceeds, and the remainder of the proceeds will be used to reduce debt under its revolvers.

Vancouver, B.C.-based TimberWest is a land management company.

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