Resolute Forest draws down on credit facility for Conifex purchase

Chicago, Feb. 6 – Resolute Forest Products Inc. used existing credit facilities for its $163 million purchase of all of the securities and membership interests in certain subsidiaries of Conifex USA Inc. and Conifex Holdco LLC, two wholly-owned subsidiaries of Conifex Timber Inc.

The acquisition is mainly for three sawmills and related assets in Florida and Arkansas, according to an 8-K filing with the Securities and Exchange Commission.

The purchase price for the business was $163 million plus working capital for the business estimated at $13 million, including the discharge by the vendors of all debt at closing.

Resolute Forest Products, formerly known as AbitibiBowater Inc., is a pulp, paper, tissue and wood products manufacturer with headquarters in Montreal.

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