Consumables

Catalyst Paper reaches agreement on term loan to refinance Senior Secured Floating Rate Notes

Thursday 13. March 2014 - Catalyst Paper (TSX:CYT) announced today that it has entered into a commitment letter with a Canadian chartered bank for a CDN $20 million term loan ("Term Loan") maturing on July 31, 2017.

The Term Loan will be used to retire the remaining US$19.4 million of outstanding Senior Secured Floating Rate Notes due 2016 (“Floating Rate Notes”).
The transaction has the requisite approval of holders of Catalyst’s PIK Toggle Senior Secured Notes due 2017 (“2017 Notes”).
The Term Loan will be provided by the lenders who participate in Catalyst’s asset based loan facility and will be secured by a charge on the assets of Catalyst and its subsidiaries that secures the 2017 Notes. The charge will rank senior to the charge securing the 2017 Notes. The Term Loan can be prepaid in whole or in part at any time without premium. The Term Loan is subject to completion of documentation and certain other conditions.
“The new Term Loan replaces the high interest rate under the Floating Rate Notes with a commercial interest rate and provides the company with greater flexibility,” said Joe Nemeth, President and Chief Executive Officer.