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Enhances Financial Flexibility and Liquidity
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb 9, 2016) - INTERFOR CORPORATION ("Interfor" or the "Company") (TSX:IFP) today announced it has closed an early renewal and extension of its $265 million credit facility, with its syndicate of major Canadian banks led by RBC Capital Markets.
The facility has been extended by over two years from the current maturity date of February, 2017 to a new maturity date of May, 2019. The new facility is for the same commitment amount, security and pricing grid as the existing facility. In addition, the renewal includes a number of improved provisions that will enhance the Company's ongoing financial flexibility and liquidity. At September 30, 2015, Interfor had $103 million of available liquidity as defined under the previous bank agreements, and this availability will be increased by approximately $24 million on a pro forma basis, under the new provisions.
"Interfor has very strong and long standing relationships with its lending partners and we were pleased with their support on the renewal," said John Horning, Interfor's Executive Vice President and Chief Financial Officer. "Interfor continues to be committed to maintaining a prudent capital structure, including the use of free cash flow to reduce leverage."
This release contains information and statements that are forward-looking in nature, including, but not limited to, statements containing the words "will", "plans" and "is expected" and similar expressions. Such statements involve known and unknown risks and uncertainties that may cause Interfor's actual results to be materially different from those expressed or implied by those forward-looking statements. Such risks and uncertainties include, among others: price volatility, competition, currency exchange sensitivity, regulatory changes, and other factors referenced herein and in Interfor's Annual Report and Annual Information Form available on www.sedar.com. The forward-looking information and statements contained in this report are based on Interfor's current expectations and beliefs. Readers are cautioned not to place undue reliance on forward-looking information or statements. Interfor undertakes no obligation to update such forward-looking information or statements, except where required by law.
Interfor is a growth-oriented lumber company with operations in Canada and the United States. The Company has annual production capacity of approximately 3 billion board feet and offers one of the most diverse lines of lumber products to customers around the world. For more information about Interfor, visit the website at www.interfor.com.
Executive Vice-President and Chief Financial Officer