GreenFirst Forest Products announced the closing of $140 million in financing from the Bank of Montreal. The financing includes a $125 million asset-backed revolving credit facility and a $15 million term loan. This refinancing replaced a high yield US$90 million secured term loan and a $65 million asset-backed loan facility.
The refinanced credit terms have lowered the Company’s cost of capital and have simplified compliance. The terms also provide GreenFirst with flexibility to advance our strategy, which includes deploying capital to expand production at our operations and the possible sale of non-core assets.
“We are pleased with the more favourable terms in this refinanced debt and the financial flexibility it gives us” said Alfred Colas, Chief Financial Officer of GreenFirst. “This is a significant improvement for us, and we appreciate the beneficial new relationship with BMO.”
“We thank BMO for partnering with us to build our business with lower cost and less administrative burden.” said Rick Doman, Chief Executive Offer of GreenFirst. “In addition, we are grateful for the support and dedication of our GreenFirst team towards this closing. We look forward to the continued execution of our plan to meet near-term milestones and drive shareholder value.”
GreenFirst Forest Products is a forest-first business, focused on sustainable forest management and lumber production. The Company owns 7 sawmills and 1 paper mill across Ontario and Quebec.