GreenFirst gets $140 million debt financing to buy Rayonier assets

By Marisa Wong

Los Angeles, April 12 – GreenFirst Forest Products Inc. said it has entered into a commitment with a New York-based investment fund for a $120 million senior secured term credit facility.

Senvest Management, LLC and the investment fund have also committed to make available a senior secured asset-based revolving credit facility in the amount of $20 million, according to a press release.

The financing is in connection with GreenFirst’s planned acquisition of a portfolio of forest and paper product assets from subsidiaries of Rayonier Advanced Materials Inc.

GreenFirst is acquiring, through a wholly owned subsidiary, the assets for a purchase price of $140 million plus the value of the inventory on-hand at the time of closing, reflecting an aggregate purchase price of about $214 million.

The purchase price is payable roughly 85% in cash and about 15% in stock.

The debt financing is conditioned on completion of an equity financing.

GreenFirst intends to seek a replacement financing commitment for a larger asset-based revolver via Royal Bank of Canada before the transaction closes. The asset-based revolver is not intended to be used to finance the payment of any of the purchase price due at closing.

GreenFirst is a Vancouver, B.C.-based company focused on environmentally sustainable forest management and lumber production.

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