Conifex announces closing of funding for Mackenzie power project
Tuesday, Dec 03, 2013
Conifex Timber Inc. ("Conifex" or the "Company") (TSX VENTURE:CFF) announced today that its wholly-owned subsidiary, Conifex Power Limited Partnership ("Conifex Power"), has closed its previously announced secured project financing (the "Project Financing") for its planned 36MW bioenergy power project in Mackenzie, British Columbia (the "Power Project") with a syndicate of four institutional lenders led by a Canadian chartered bank.
The Project Financing is for an aggregate of up to $102.7 million and includes a development and construction loan for the Power Project of up to $82 million (the "Loan Facility"). The Loan Facility consists of a construction loan which will mature approximately 12 months from the closing date and convert into an amortized term loan having a term of 5 years once the conditions to conversion are satisfied, including substantial completion of construction of the Power Project. The balance of the Project Financing is in the form of a letter of credit facility primarily to secure certain obligations of Conifex Power under its existing load displacement agreement and a $1.75 million revolving operating facility.