KP Tissue Inc. (“KPT”) (TSX: KPT) and Kruger Products L.P. (“KPLP”) today announced that certain wholly-owned subsidiaries of KPLP have closed financing transactions to fund the previously announced expansion of its Sherbrooke operations.
The financings, totalling $240 million, include the previously announced $165 million in investments by Investissement Québec, as well as a credit agreement between Kruger Products SB Inc. (“KPSB”) and National Bank of Canada (as administrative agent), the Bank of Nova Scotia and CIBC who acted as co-lead arrangers and joint bookrunners. The credit agreement includes senior credit facilities in an amount of $75 million to be made available to KPSB.
In connection with the financings, KPLP’s credit agreement with National Bank of Canada (acting as administrative agent) was amended to, amongst other things, increase the amount of permitted debt.
With this important step being completed, KPLP will now focus on the next phase of its project.