Canfor Issues Assurances on Cash Holdings and Short-Term Investments
Vancouver, British Columbia, Canada, 27 August 2007 -– Canfor Corporation (TSX:CFP) advised today that its exposure to the non-bank Canadian Asset Backed Commercial Paper (ABCP) market is CAD 85 M, or 17% of the company’s total cash position. Coventree Capital Group Inc manages CAD 46 M of that amount.
At the time of purchase, these investments were rated R1 – High by the Dominion Bond Rating Service and continue to be at present. Despite liquidity concerns in the ABCP market, the company has sufficient cash to meet its financial and operational requirements. Canfor will continue to monitor the situation.
Canfor is a leading integrated forest products company based in Vancouver, British Columbia, with interests in 33 facilities in British Columbia, Alberta, and Quebec in Canada, and Washington, North Carolina, and South Carolina in the United States. The company is the largest producer of softwood lumber in Canada. It also produces oriented strand board (OSB), plywood, remanufactured lumber products, and specialized wood products. Canfor owns a 50.2% interest in Canfor Pulp Limited Partnership, which is one of the largest producers of northern softwood kraft pulp in Canada and a leading producer of high performance kraft paper. Canfor shares are traded on the Toronto Stock Exchange (TSX: CFP).