Business News

Catalyst Paper to assess refinancing alternatives

Wednesday 24. June 2009 - Catalyst Paper (TSX:CTL) today 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 its US$354 million of 8.625% notes and its US$250 million of 7.375% notes which mature in 2011 and 2014, respectively.

“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 Chief Financial Officer 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.