By: The Working Forest Staff
VANCOUVER BC — Conifex Timber Inc. has announced hat its wholly-owned subsidiary Conifex Power Limited Partnership completed a $70 million secured term loan with a syndicate of private lenders to refinance its existing loan. The Loan has a 15-year term, is secured by substantially all of the power segment assets and bears interest at a rate of 6.10% per annum.
The Loan is expected to be fully amortized over its 15-year term, which ends approximately 18 months before the remaining term of Conifex Power Limited Partnership’s Electricity Purchase Agreement with B.C. Hydro and Power Authority. Upon the fulfillment of a requirement to fund a reserve account, the Company expects the free cash flow generated from the power project will be available for general corporate purposes. The Loan is non-recourse to the other operations of Conifex Timber Inc.