Catalyst Seeks Alternatives for Refinancing Notes
June 24, 2009 - Catalyst Paper yesterday announced, in response to the continued deterioration in market conditions affecting the forest products industry generally and newsprint in particular, that it is reviewing alternatives to address the maturity of its senior unsecured notes.
The review will focus on refinancing alternatives for the company's US$354 million of 8.625% notes and its US$250 million of 7.375% notes which mature in 2011 and 2014, respectively, Catalyst said.
"Given the extremely challenging market conditions that we are managing through, and the lack of any signs of a meaningful recovery, it's appropriate to consider options well ahead of the stated maturities," said Catalyst's CFO David Smales. "The two-year window to the first maturity represents a relatively short period given current market and credit conditions."
Catalyst has engaged Genuity Capital Markets to assist in this process.
Catalyst is the largest producer of specialty printing papers and newsprint in Western North America and also produces market kraft pulp and owns Western Canada's largest paper recycling facility. The company's six mills have a combined annual production capacity of 2.5 million tonnes.
Catalyst is headquartered in Richmond, British Columbia, Canada
SOURCE: Catalyst Paper