Interfor Announces Additional Long-Term Debt Financing with Prudential Capital Group

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb. 17, 2015) - INTERFOR CORPORATION ("Interfor" or the "Company") (TSX:IFP) announced today it has priced a US$100 million long-term debt financing with Prudential Capital Group. The senior secured notes will carry an annual interest rate of 4.17% and have a final maturity in 2026. The financing is expected to close on March 16^th and the proceeds will be used to reduce the drawings under the Company's bank credit facilities. As previously disclosed, the Company expects to close the acquisition of four sawmills from Simpson Lumber Company, LLC on March 1st, with a portion of the acquisition price initially financed from funds currently available under its existing bank credit facilities.

"This transaction will increase our long-term debt to a total of US$200 million, and significantly extend our debt maturities at an extremely attractive interest rate," said John Horning, Executive Vice President and Chief Financial Officer at Interfor. "Following completion of this financing, Interfor's total long-term debt will have an average interest rate of 4.17% with maturities that are evenly spread across the years 2021-2026."

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: 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 2.4 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.

ABOUT PRUDENTIAL CAPITAL GROUP

Prudential Capital Group has been a leading provider of private debt, mezzanine and equity securities to companies worldwide for more than 70 years. Managing a portfolio of $76.1 billion as of December 31, 2014, Prudential Capital offers senior debt and mezzanine capital, leveraged leases, credit tenant leases, and equipment finance to companies, worldwide. The global regional office network has locations in Atlanta, Chicago, Dallas, Frankfurt, London, Los Angeles, Milan, Minneapolis, Newark, N.J., New York, Paris and San Francisco. For more information, please visit www.prudentialcapitalgroup.com.