Conifex gets commitment for $220 million five-year credit facility

By Sarah Lizee

Olympia, Wash., May 16 – Conifex Timber Inc. obtained a commitment for a $220 million five-year credit facility from a U.S. bank, according to a press release.

Conifex said it received the commitment in connection with its agreement with BW SLC Holdings, LLC, an affiliate of Blue Wolf Capital Partners LLC, and the minority shareholders of Caddo River Forest Products, LLC to purchase all of the outstanding membership interests of Suwannee Lumber Holding Co., LLC, Suwannee Timber Management, LLC and Caddo River Forest Products, LLC.

The facility will be used to partially finance the acquisition, to replace Conifex’s current facility and for general working capital.

Conifex’s consideration for the transaction consists of $150 million plus net working capital of the BW group at closing in cash, $50 million in common shares and 3.5 million warrants. The company said it is also reviewing other supplemental funding for the acquisition.

The transaction is expected to be closed at or around the end of the second quarter of 2018.

Based in Vancouver, B.C., Conifex makes lumber products.

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