Date Closed

November 19, 2018

Lead Office

Montréal

Value

575.00 Million CAD

On November 19, 2018, Kruger Products L.P. ("Kruger Products") announced that it and certain of its subsidiaries have closed financing transactions (the "Financings") to fund the previously announced C$575 million TAD2 Project. The Financings include credit facilities in aggregate amounts of US$198 million, C$123.5 million and US$147 million made available to certain subsidiaries of Kruger Products under a credit agreement with American AgCredit FLCA and National Bank of Canada, the issuance of a C$105 million convertible debenture by Kruger Products Sherbrooke Inc., the entity that will construct and operate the TAD2 Project, to Investissement Québec, a senior secured credit facility in an amount of US$48.8 million made available to Kruger Products under a credit agreement with Nordea Bank Abp, filial i Sverige, and a C$50 million factoring facility made available to Kruger Products under a receivables purchase agreement with The Bank of Nova Scotia.

The TAD2 Project involves the construction of a new, state-of-the-art tissue plant in the Brompton area of Sherbrooke, Quebec and will feature Canada’s largest and most modern through-air-dry (TAD) paper machine along with related converting equipment and infrastructure. 

McCarthy Tétrault LLP advised Kruger Products with a team led by Marie-France Gagnon, Marc Dorion and Mathieu LeBlanc that included Mary Jeanne Phelan, François Dupuis, Eve Tessier and Jason Phelan (Financial Services), Philippe Fortier, Fraser Bourne, Thomas Etienne, Konstantin Sobolevski, Jean-Paul Timothée and Felipe Diaz Villegas (Corporate), and Annie Gagnon-Larocque (Real Estate).