Catalyst Paper Refinances $75M of Debt Related to Energy JV
July 21, 2009 - Catalyst Paper said that its hydro joint venture, Powell River Energy Inc., has successfully raised $95 million of first mortgage bonds maturing in July 2016 to refinance $75 million of non-recourse debt due on July 24, 2009.
The new bonds are priced at an interest rate of 6.45%, payable semi-annually, Catalyst said.
The deal is scheduled to close on July 24, 2009.
Catalyst said that it holds a 50 percent interest in Powell River Energy Inc. with Great Lakes Hydro Income Fund holding an equivalent stake.
After fees and other expenses, the additional $18 million in funds raised in this refinancing is to be distributed equally to the joint venture partners, Catalyst added.
SOURCE: Catalyst Paper