Richmond, British Columbia, Canada, 21 July 2009 – Catalyst Paper (TSX:CTL) announced today that its hydro joint venture, Powell River Energy Inc., has successfully raised CAD 95 million of first mortgage bonds maturing in July 2016 to refinance CAD 75 million of nonrecourse debt due on 24 July 2009. The new bonds are priced at an interest rate of 6.45%, payable semiannually. The transaction is scheduled to close on 24 July 2009.
Catalyst has a 50% interest in Powell River Energy Inc. with Great Lakes Hydro Income Fund holding an equivalent stake. After fees and other expenses, the additional CAD 18 million in funds raised in this refinancing is to be distributed equally to the joint venture partners.
Catalyst Paper manufactures diverse specialty printing papers, newsprint, and pulp. Its customers include retailers, publishers, and commercial printers in North America, Latin America, the Pacific Rim, and Europe. With six mills strategically located in British Columbia, Canada, and Arizona, USA, Catalyst has a combined annual production capacity of 2.5 million metric tons. The company is headquartered in Richmond, British Columbia, Canada, and its common shares trade on the Toronto Stock Exchange under the symbol CTL.