By Paul A. Harris
St. Louis, Sept. 11 - TimberWest Forest Corp. priced a C$50 million add-on to its 7% senior debentures due Oct. 1, 2007 at 101.28 in a bought deal.
Merrill Lynch Canada Inc. led the Rule 144A deal. BMO Nesbitt Burns, Scotia Capital, HSBC Securities (Canada) and National Bank Financial were also underwriters.
The company will use proceeds to pay down its revolving credit facility.
TimberWest has granted the underwriters an option to purchase up to an additional C$15 million of debentures, exercisable until the close of business on Sept. 12. At the price of 101.28, plus accrued interest from April 1, 2003 to closing on Sept. 26, the maximum net proceeds will be C$65.2 million, if the greenshoe is exercised in full.
TimberWest priced the original C$130 million of the debentures on Sept. 24, 2002 at 99.552.
The company is based in Vancouver, B.C.
| Issuer: | TimberWest Forest Corp.
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| Security description: | Senior debentures
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| Amount: | C$50 million (plus C$15 million over-allotment option)
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| Bookrunner: | Merrill Lynch Canada
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| Maturity: | Oct. 1, 2007
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| Coupon: | 7%
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| Price: | 101.28
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| Yield: | 6.631%
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| Call: | Make-whole call at 75 basis points over Canadian government bond yield
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| Settlement date: | Sept. 26, 2003 with accrued interest
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