VANCOUVER, B.C / ACCESSWIRE / August 21, 2014 / Jemi Fibre Corp. (TSX-V: JFI) ("Jemi Fibre" or the "Company") announced today that it has obtained a credit facility from a Canadian asset based lender (the "Lender") under which, subject to certain conditions, the Company will borrow an aggregate maximum principal amount of $30,000,000 (the "Facility"). The Facility is being made through a $10,000,000 loan ("Facility A") for the purposes of refinancing existing debt on the Company’s WoodEx sawmill and to provide general working capital for the Company; and, through a $20,000,000 loan ("Facility B") for the purpose of completing, in September 2014, the acquisition from Tembec of an additional 31,800 hectares of private timberland previously announced on May 25, 2014 and June 25, 2014.
The Facility is due on demand and if no demand has been made by the Lender, the Facility will be due 24 months from the date of advance. The Facility will bear interest, subject to certain adjustments, at 16% per annum payable at 13% monthly and 3% deferred until the earlier of 24 months or demand under the Facility. The interest rate may be decreased by up to 3% if the Company meets certain fixed charge coverage ratios. A repayment fee of 2% of the loan amount will be charged on Facility A if repaid in full within six months of the initial advance of funds. Such fee is reduced by 0.5% every 6 months thereafter. A repayment fee of 2% of the loan amount will be charged on Facility B if repaid in full within six months of the initial advance of funds. Such fee is reduced to 0% thereafter.
Michael Ainsworth, CEO, commented: "With this bridge financing, Jemi Fibre can complete the series of acquisitions it has assembled over the past year. It will also enable us to progress the operations of our newly acquired logging, mill and private timberland operations as we work towards recapitalizing our balance sheet with the appropriate mix of long term debt and equity."
ON BEHALF OF THE BOARD OF DIRECTORS
JEMI FIBRE CORP.
CEO and President
SOURCE: Jemi Fibre Corp.