Interfor Completes Acquisition of Chaleur Forest Products and Announces Additional Long-Term Debt Financing, The Canadian Business Journal

BURNABY, British Columbia, November 30, 2022 (GLOBE NEWSWIRE) — Interfor Co., Ltd. (“Interfor” or the “Company”) (TSX: IFP) today announced previously to acquire a 100% interest in the entity comprising Chaleur Forest Products (“Chaleur”) located in New Brunswick, Canada. announced the completion of the transaction. From an affiliate of the Kilmer Group.

Interfor also announced today that it has priced US$200 million in additional long-term debt financing with Prudential Private Capital. The senior secured bond has an annual interest rate of 7.06% and a final maturity of he 2033. All other terms are consistent with Interfor’s existing Senior Secured Notes. The financing is expected to close in early December, and the proceeds will be used to finance the Chaleur acquisition and for general corporate purposes.

Upon completion of the financing, Interfor’s long-term debt will have a weighted average interest rate of 5.30% and will have tiered maturities primarily from 2024 to 2033.

Interfor continues to have significant financial flexibility to execute strategic capital investment plans and explore additional value-creating capital deployment options. As of October 31, 2022, Interfor’s ratio of net debt to invested capital was approximately 10%. The pro forma of the Chaleur acquisition and additional long-term debt financing will result in Interfor’s pro forma net debt to invested capital ratio of approximately 22% as of October 31, 2022. ¹Similarly, pro forma liquidity as of October 31, 2022 consists of cash on hand and the amount available under existing revolving credit facilities, plus the potential additional available within existing credit limits. That would be approximately C$520 million before considering borrowing capacity.

This release, including the French version, can be found in the news investor section of www.interfor.com.

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¹ The pro forma is based on a base purchase price of C$325 million, plus approximately C$50 million of countervailing duty (“CV”) and anti-dumping (“AD”) duties, working capital and other items. and all of which are subject to final closing. adjustment.

Forward-Looking Statements

This release contains forward-looking information regarding our business prospects, objectives, plans, strategic priorities and other information that is not a historical fact. Statements contain forward-looking information when the company uses what it currently knows and expects to make statements about the future. Statements containing forward-looking information may include words such as: Readers are cautioned that actual results may differ from the forward-looking information in this release. Also, you should not place undue reliance on such forward-looking information. Risk factors that could cause actual results to differ materially from the forward-looking information in this release are identified in Interfor’s third quarter and annual management reflections and analysis under the heading “Risks and Uncertainties.” are listed below. These can be found under his Interfor profile on www.interfor.com and www.sedar.com. Significant factors and assumptions used to create the forward-looking information in this release include volatility in sales prices of timber, logs and woodchips. Our ability to compete on a global basis. Log supply availability and cost. natural or man-made disasters; exchange rates; changes in government regulations; Aboriginal Settlements; Our Ability to Export Products; softwood trade dispute between Canada and the United States; the environmental impact of our business; labor disruption; information system security; and the existence of a public health crisis. Unless otherwise stated, forward-looking statements in this release are based on our expectations as of the date of this release. Interfor does not undertake any obligation to update such forward-looking information or statements, except as required by law. Our independent auditor, KPMG LLP, has not performed an audit, review or procedure with respect to the interim financial results and other data contained in this release and, therefore, expresses an opinion or other form of assurance with respect thereto. Not a thing.

About Intel Four

Interfor is a growth-oriented forest products company with operations in Canada and the United States. With a timber production capacity of approximately 5.2 billion board feet per year, the company offers a wide variety of timber products to customers around the world. For more information on Interfor, please visit our website at www.interfor.com.

Investor Contact:

Rick Pozzebon, Executive Vice President and Chief Financial Officer
(604) 689-6804

Mike McKay, Vice President of Corporate Development and Strategy
(604) 689-6846

Media contact:

Svetlana Kayumova, Senior Manager, Corporate Affairs & Communications
(604) 422-7329
[email protected]

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