Press release from Marketwire
Conifex Announces Commitment for Funding of Mackenzie Power Project
Tuesday, September 17, 2013
Conifex Announces Commitment for Funding of Mackenzie Power Project17:49 EDT Tuesday, September 17, 2013
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sept. 17, 2013) - Conifex Timber Inc. ("Conifex" or the "Company") (TSX VENTURE:CFF) announced today that, further to its prior news release, its wholly-owned subsidiary, Conifex Power Limited Partnership ("Conifex Power"), has accepted commitment letters from a syndicate of three institutional lenders led by a Canadian chartered bank for secured project financing (the "Project Financing") for its planned 36MW bioenergy power project in Mackenzie, British Columbia (the "Power Project"). The Project Financing is for an aggregate of $103 million and will include approximately $80 million (the "Loan Facility") as a development and construction loan for the Power Project. The Loan Facility will consist of a construction loan which will mature approximately 14 months from the closing date and convert into an amortized term loan having a term of 5 years once the conditions to conversion are satisfied, including substantial completion of construction of the Power Project. The balance of the Project Financing will be in the form of a letter of credit facility primarily to secure certain obligations of Conifex Power under its existing load displacement agreement and a $1.75 million revolving operating facility.
Ken Shields, Chief Executive Officer of Conifex, commented: "This project financing paves the way for us to complete the construction and commissioning of our green power generation project. Coupled with our recently announced $30 million note financing to assist in funding the modernization and upgrading of our Mackenzie sawmill, we now have the financial resources to further our objective of making the Mackenzie site world-class in terms of scale, revenue diversity, and cost-competitiveness."
The Project Financing will be subject to customary closing conditions for a project financing of this type, including, among others completion of definitive documentation, which shall contain customary representations, warranties and covenants.
About Conifex Timber Inc.
Conifex and its subsidiaries' primary business currently includes timber harvesting, reforestation, forest management, and the manufacture, sale and distribution of dimension lumber. Conifex's lumber products are sold in the United States, Chinese, Canadian and Japanese markets. Upon completion of its bioenergy facility at Mackenzie, British Columbia, Conifex's business sectors will be expanded to include bioenergy.
Certain statements in this news release may constitute "forward-looking statements", including statements with respect to the Financing described herein and project financing for the bioenergy facility. Forward-looking statements are statements that address or discuss activities, events or developments that the Company expects or anticipates may occur in the future. When used in this news release, words such as "estimates", "expects", "plans", "anticipates", "projects", "will", "believes", "intends" "should", "could", "may" and other similar terminology are intended to identify such forward-looking statements. Forward-looking statements reflect the current expectations and beliefs of the Company's management. Because forward-looking statements involve known and unknown risks, uncertainties and other factors, actual results, performance or achievements of the Company or industry may be materially different from those implied by such forward-looking statements. Forward-looking statements involve significant uncertainties, should not be read as a guarantee of future performance or results, and will not necessarily be an accurate indication of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including the ability to obtain all necessary regulatory approvals, satisfactory completion of due diligence by the lenders for the Project Financing, the ability to negotiate definitive documentation with respect to the Project Financing, the cost of the Power Project, timing of completion, if at all, of the Power Project and the expected benefits and results of operations of the Power Project, as well as those matters described in the Company's 2012 annual information form for the fiscal year ended December 31, 2012, available on SEDAR at www.sedar.com. Accordingly, readers should exercise caution in relying upon forward-looking statements and the Company undertakes no obligation to publicly revise them to reflect subsequent events or circumstances, except as required by law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
FOR FURTHER INFORMATION PLEASE CONTACT:
Conifex Timber Inc.
Chief Financial Officer