International Forest Products Limited
TSX : IFP.A

International Forest Products Limited

September 11, 2013 16:29 ET

Interfor Announces $75 Million Bought Deal Financing Agreement

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sept. 11, 2013) -

NOT FOR DISTRIBUTION TO US NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.

INTERNATIONAL FOREST PRODUCTS LIMITED ("Interfor" or the "Company") (TSX:IFP.A) announced today that it has entered into an agreement to issue 6,250,000 Class "A" Subordinate Voting shares (the "Shares") on a bought deal basis to a syndicate of underwriters led by RBC Capital Markets and Raymond James.

The Shares will be publically offered in Canada under a short form prospectus at a price of $12.00 per share (the "Offer Price"), representing an aggregate issue amount of $75,000,000, subject to the fulfillment of certain conditions. Interfor has also granted the underwriters the option to purchase up to an additional 15% of the issue size at the Offering Price, such option to be exercised, in whole or in part, at the sole discretion of the underwriters at closing or anytime following closing of the offering for a period of 30 days.

Net proceeds from the offering will be used to complete a number of high return capital projects and to enhance the company's ability to pursue additional strategic initiatives. These proceeds will initially reduce outstanding indebtedness under existing revolving lines of credit.

The offering is subject to certain conditions, including the receipt of all necessary regulatory and stock exchange approvals and closing is expected to occur on or about October 1, 2013.

This press release does not constitute an offer to sell or a solicitation of an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "1933 Act"), or any state securities law and may not be offered or sold within the United States, or to, or for the account or benefit of, US persons (as defined in Regulation S under the 1933 Act) absent such registration or an applicable exemption from such registration requirements.

FORWARD-LOOKING STATEMENTS

This release contains information and statements that are forward-looking in nature, including, but not limited to, statements containing the words "will" and "is expected" and similar expressions. Such statements involve known and unknown risks and uncertainties that may cause Interfor's actual results to be materially different from those expressed or implied by those forward-looking statements. Such risks and uncertainties include, among others: satisfaction of the conditions to the offering in a timely manner, general economic and business conditions, product selling prices, raw material and operating costs, changes in foreign-currency exchange rates, and other factors referenced herein and in Interfor's Annual Report and Management Information Circular available on www.sedar.com. The forward-looking information and statements contained in this report are based on Interfor's current expectations and beliefs. Readers are cautioned not to place undue reliance on forward-looking information or statements. Interfor undertakes no obligation to update such forward-looking information or statements, except where required by law.

ABOUT INTERFOR

Interfor is a growth-oriented lumber company with operations in Canada and the United States. The Company has annual production capacity of more than 2.2 billion board feet and offers one of the most diverse lines of lumber products to customers around the world. For more information about Interfor, visit our website at www.interfor.com.

Contact Information

  • International Forest Products Limited
    Duncan K. Davies
    President and Chief Executive Officer
    (604) 689-6881
    www.interfor.com