SGF extends a $79 million loan to Fibrek

Société générale de financement du Québec (SGF) has announced a contribution of $78 million dollars as part of a global refinancing agreement totaling approximately $190 M for Fibrek Inc., whose head office is located in Longueuil, Québec.

The objective of this loan is to improve the company's balance sheet and, mostly, ensure the execution if its long-term development plan. This commitment takes the form of a five-year guaranteed term loan bearing an 8.25% interest rate.

Fibrek, formerly known as SFK Pulp, is a leader in the production and distribution of high-quality virgin and recycled kraft pulp and operates three plants located in Saint-Félicien (Québec), Fairmont (West Virginia), and Menominee (Michigan). The Saint-Félicien plant provides Northern Bleached Softwood Kraft pulp (known as NBSK pulp) to various paper industry sectors in Canada, the United States and Europe for the production of specialized products.

The Saint-Félicien plant, which uses the most softwood chips in Québec, is an important link in the forest sector's value chain. "With our investment and that of our partners in this project, we will allow the company to significantly reduce its debt ratio, to yield an improved financial performance and to maintain, and even increase, the value of the economic fallbacks in two major regions in Québec," said Pierre Shedleur, SGF President and General Manager.

Source: SGF