Western Forest seeks C$175 million credit facility

By Sara Rosenberg

New York, March 14 - Western Forest Products Inc. is working on getting a new C$175 million credit facility, according to a news release.

GE Corporate Lending, CIBC and Bank of Nova Scotia are the lead banks on the deal.

The facility consists of a C$75 million three-year revolver and a C$100 million 18-month term loan.

Proceeds will be used to retire the company's existing $72.9 million of term loan debt and C$101.8 million provided by the Brookfield Bridge Lending Fund, a lender related to Tricap Management Ltd., the company's largest shareholder.

The new facility will have a lower overall interest cost, but additional financial covenants when compared to the previous facilities.

The transaction is expected to close shortly.

Western Forest is a Duncan, B.C.-based forest products company, and woodland operator and lumber producer.

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