GreenFirst Established New Term Loan Facility to Support Kap Paper

SEATTLE (Scrap Monster): GreenFirst Forest Products Inc. announced $24 million financing for its wholly owned subsidiary, Kap Paper Inc.

According to company press release, Kap Paper has entered into a loan agreement towards establishing a non-revolving term loan facility of $24 million in support of its paper mill operations in Kapuskasing town. The loan amount would be utilized for general working capital purposes, it noted.

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Commenting on the development, Terry Skiffington, CEO, Kap Paper stated that the financing will help the company to move forward on its long-term strategy, thereby ensuring its competitiveness. Meanwhile, Joel Fournier, CEO, GreenFirst Forest Products also noted that the financial support is integral to its long-term strategy as well, as it utilizes Kap Paper’s operations as an outlet for chips from its Kapuskasing, Hearst and Cochrane sawmills.

Kap Paper has been focusing on mill operations. It has recovered well from various operational challenges faced by it during the past two quarters, mainly on account of external factors. The company looks forward to build on this momentum to deliver further operational efficiencies. Incidentally, Kap Paper is the only pulp and paper mill in operation in the Eastern Ontario region.