Note: Financial references in US dollars unless otherwise
indicated.
TORONTO, May 20, 2020 /CNW/ - Norbord Inc. (TSX and NYSE:
OSB) announced today that, consistent with its standard practice,
the Company has renewed its committed revolving bank lines
(Revolvers) on substantially the same terms and conditions. The
maturity date has been extended to May
2022 and, to further strengthen liquidity, the aggregate
commitment has been increased by $55
million to $300 million. Pro
forma for this renewal, Norbord's liquidity would have been
$302 million as at the end of the
first quarter of 2020, consisting of $30
million in cash and $272
million in unused Revolvers. Norbord continues to have
comfortable headroom against the two financial covenants governing
access to its Revolvers (net debt to total capitalization and
tangible net worth), as detailed in its first quarter earnings
release dated May 6, 2020.
"In this environment of economic uncertainty from the COVID-19
pandemic, safety and flexibility are paramount," said Peter
Wijnbergen, Norbord's President & CEO. "Our current operating
configuration gives us the flexibility to adjust our production
volume up and down to match production with customer demand. The
renewal of our Revolvers augments our existing strong liquidity and
further protects Norbord's balance sheet flexibility."
Norbord Profile
Norbord Inc. is a leading global manufacturer of wood-based
panels and the world's largest producer of oriented strand board
(OSB). In addition to OSB, Norbord manufactures particleboard,
medium density fibreboard and related value-added products. Norbord
has assets of approximately $1.9
billion and employs approximately 2,400 people at 17 plant
locations in the United States,
Canada and Europe. Norbord is a publicly traded company
listed on the Toronto Stock Exchange and New York Stock Exchange
under the symbol "OSB".
This news release contains forward-looking statements, as
defined by applicable securities legislation, including statements
related to our strategy, projects, plans, future financial or
operating performance and other statements that express
management's expectations or estimates of future performance.
Often, but not always, forward-looking statements can be identified
by the use of words such as "continue" and "would," and other
expressions which are predictions of or indicate future events,
trends or prospects and which do not relate to historical matters
identify forward-looking statements. Forward-looking statements
involve known and unknown risks, uncertainties and other factors
which may cause the actual results, performance or achievements of
Norbord to be materially different from any future results,
performance or achievements expressed or implied by the
forward-looking statements.
Although Norbord believes it has a reasonable basis for
making these forward-looking statements, readers are cautioned not
to place undue reliance on such forward-looking information. By its
nature, forward-looking information involves numerous assumptions,
inherent risks and uncertainties, both general and specific, which
contribute to the possibility that the predictions, forecasts and
other forward-looking statements will not occur. These factors
include, but are not limited to: (1) developments related to
COVID-19 or any other plague, epidemic, pandemic, outbreak of
infectious disease or any other public health crisis, including
health and safety measures instituted to protect the Company's
employees, government-imposed restrictions or other restrictions
that may apply to the Company's employees and/or operations
(including quarantine), the impact on customer demand, supply and
distribution and other factors; (2) assumptions in connection with
the economic and financial conditions in the US, Europe, Canada and globally; (3) risks inherent to
product concentration and cyclicality; (4) effects of competition
and product pricing pressures; (5) risks inherent to customer
dependence; (6) effects of variations in the price and availability
of manufacturing inputs, including continued access to fibre
resources at competitive prices and the impact of third-party
certification standards; (7) availability of transportation
services, including truck and rail services, and port facilities;
(8) various events that could disrupt operations, including
natural, man-made or catastrophic events and ongoing relations with
employees; (9) impact of changes to, or non-compliance with,
environmental or other regulations; (10) government restrictions,
standards or regulations intended to reduce greenhouse gas
emissions; (11) impact of weather and climate change on Norbord's
operations or the operations or demand of its suppliers and
customers; (12) impact of any product liability claims in excess of
insurance coverage;(13) risks inherent to a capital intensive
industry; (14) impact of future outcomes of tax exposures; (15)
potential future changes in tax laws, including tax rates; (16)
effects of currency exposures and exchange rate fluctuations; (17)
future operating costs; (18) availability of financing, bank lines,
securitization programs and/or other means of liquidity; (19)
impact of future cross-border trade rulings or agreements; (20)
implementation of important strategic initiatives and
identification, completion and integration of acquisitions; (21)
ability to implement new or upgraded information technology
infrastructure; (22) impact of information technology service
disruptions or failures; and (23) changes in government policy and
regulation.
The above list of important factors affecting forward-looking
information is not exhaustive. Additional factors are noted
elsewhere, and reference should be made to the other risks
discussed in filings with Canadian and US securities regulatory
authorities. Except as required by applicable law, Norbord does not
undertake to update any forward-looking statements, whether written
or oral, that may be made from time to time by, or on behalf of,
the Company, whether as a result of new information, future events
or otherwise, or to publicly update or revise the above list of
factors affecting this information. See the "Forward-Looking
Statements" section in the February 4,
2020 Annual Information Form and the cautionary statement
contained in the "Forward-Looking Statements" section
of the 2019 Management's Discussion and Analysis
dated February 4, 2020 and Q1 2020
Management's Discussion and Analysis dated May 5, 2020.
See "Non-International Financial Reporting Standards (IFRS)
Financial Measures" in Norbord's 2019 Management's Discussion and
Analysis dated February 4, 2020 and
Q1 2020 Management's Discussion and Analysis dated May 5, 2020.
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SOURCE Norbord Inc.