Interfor Corporation announced on Wednesday (11-30-22) that it has completed the previously announced transaction to acquire 100% of the equity interests in the entities comprising Chaleur Forest Products (“Chaleur”) in New Brunswick, Canada, from an affiliate of the Kilmer Group.
In the same press release, Interfor announced that it has priced US$200 million in additional long-term debt financing with Prudential Private Capital. The senior secured notes will carry an annual interest rate of 7.06% and have a final maturity in 2033. All other terms remain consistent with Interfor’s existing senior secured notes. The financing is expected to close in early December and the proceeds will be used to finance the Chaleur acquisition and for general corporate purposes.
Following completion of the financing, Interfor’s long-term debt will have a weighted average interest rate of 5.30% with laddered maturities principally spanning 2024-2033.
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