VANCOUVER, BC, April 6, 2021 /CNW/ - West Fraser Timber Co.
Ltd. ("West Fraser" or the "Company") (TSX and NYSE:
WFG) announced today that its wholly-owned subsidiary, Norbord Inc.
("Norbord"), will redeem on May 6,
2021 all of Norbord's outstanding 5.75% Notes due
July 15, 2027 (the "2027 Notes"). A
total of approximately US$349.4
million of 2027 Notes are presently outstanding following
the repurchase of approximately US$0.6
million of 2027 Notes under the change of control offer
required under the relevant note indentures in connection with the
acquisition of Norbord and announced on March 2, 2021.
The redemption will be completed under the optional redemption
provisions of the indenture governing the 2027 Notes at a
redemption price equal to 100% of the principal amount of the 2027
Notes plus a make-whole premium based on the July 15, 2022 early call date together with
accrued and unpaid interest to, but excluding, the redemption date.
The impact of this transaction is not expected to be material to
West Fraser's earnings.
"Redemption of these notes, which we will fund with cash on
hand, will reduce our indebtedness and is one step in the process
of optimizing our capital structure following the acquisition of
Norbord," said Ray Ferris, West
Fraser's President and CEO.
This news release does not constitute a notice of redemption of
the 2027 Notes, nor a solicitation to buy or an offer to purchase
or sell any securities. The notice of redemption was sent to the
registered holders of the 2027 Notes on April 6, 2021. The 2027 Notes are to be
surrendered to the paying agent in exchange for payment of the
redemption price. On and after the date of redemption, the 2027
Notes will no longer be outstanding, interest thereon will cease to
accrue and all rights of the holders of the 2027 Notes will cease
to exist, except for the right to receive the redemption price on
the date of redemption.
The Company
West Fraser is a diversified wood products company with more
than 60 facilities in Canada,
the United States, the
United Kingdom, and Europe. From responsibly sourced and
sustainably managed forest resources, the Company produces lumber,
engineered wood products (OSB, LVL, MDF, plywood, and
particleboard), pulp, newsprint, wood chips, other residuals and
renewable energy. West Fraser's products are used in home
construction, repair and remodeling, industrial applications,
papers, tissue, and box materials.
Forward-Looking Statements
This news release contains forward-looking information or
forward-looking statements (collectively, "forward-looking
statements") within the meaning of applicable securities
laws, including statements related to expectations
about the planned redemption of the 2027 Notes and timing and the
materiality of the 2027 Notes redemption on earnings, and other
statements related to the Company's strategy, projects, plans,
future financial or operating performance and other statements that
express management's expectations or estimates of future
performance. The reader is cautioned that
forward-looking statements are based on certain assumptions and are
subject to known and unknown risks and uncertainties (both general
and specific) that contribute to the possibility that the future
events or circumstances contemplated by the forward-looking
information will not occur. Readers should also refer to the risk
factors set forth in the Company's annual information form and
management's discussion and analysis for the year ended
December 31, 2020, each dated
February 11, 2021, available at SEDAR
(www.sedar.com) and EDGAR (www.sec.gov/edgar.shtml). There can be
no assurance that the plans, intentions or expectations upon which
forward-looking statements are based will be realized. Actual
results may differ, and the difference may be material and adverse
to the Company and its shareholders.
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SOURCE West Fraser Timber Co. Ltd.