DGAP-News: FORTRESS PAPER ANNOUNCES SIGNING OF EUR 18.5 MILLION LOAN FOR PM1 REBUILD
(firmenpresse) - Fortress Paper Ltd. / Corporate Action
19.02.2010 10:04
Dissemination of a Corporate News, transmitted by
DGAP - a company of EquityStory AG.
The issuer / publisher is solely responsible for the content of this announcement.
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FORTRESS PAPER ANNOUNCES SIGNING OF EUR 18.5 MILLION LOAN FOR PM1 REBUILD
VANCOUVER, British Columbia, February 18, 2010 - Fortress Paper Ltd.
www.fortresspaper.com ('Fortress Paper' or the 'Corporation') announces the
signing by its wholly owned subsidiary Dresden Papier GmbH ('Dresden') of a
loan agreement for EUR 18.5 million (CDN $26.5M) with GE Capital Bank AG in
connection with the rebuild of Landqart AG's ('Landqart') papermachine no.
1 ('PM1') to produce banknote papers. The loan agreement is for a 7 year
term, fixed for the first 3 years at 7.09% per annum beginning after final
drawdown which is anticipated to be early 2011. During the drawdown
period, interest only payments will be required at 6.20% per annum.
The Dresden loan in conjunction with the previously announced Dresden
factoring agreement for up to EUR 12 million, the Landqart factoring
agreement to be finalized together with cash on hand will provide the
necessary financing and cashflow for the rebuild of the PM1 machine. The
rebuild increases Fortress' banknote production capacity from the current
2,500 tonnes per annum to approximately 10,000 tonnes per annum.
PM1 is currently utilized for lower margin specialty papers and low to
medium security papers. The rebuild is expected to be completed by the end
of 2010, with banknote papers production from this rebuilt machine
scheduled to begin in the first quarter of 2011.
About Fortress Paper
Fortress Paper is a leading international producer of security and other
specialty papers. Fortress Paper operates two paper mills, the Landqart
Mill located in Switzerland and the Dresden Mill located in Germany.
Fortress Paper's security papers include banknote, passport and visa papers
and its specialty papers include non-woven wallpaper base products, and
graphic and technical papers. As an extension of its security papers
business, the Landqart Mill has been actively developing and marketing
innovative paper-based security products.
For more information, please contact:
Chadwick Wasilenkoff
Fortress Paper Ltd.
604-904-2328
info(at)fortresspaper.com
www.fortresspaper.com
This news release contains certain forward-looking statements that reflect
the current views and/or expectations of Fortress Paper Ltd. with respect
to its performance, business and future events. Investors are cautioned
that all forward-looking statements involve risks and uncertainties
including, without limitation, those relating to changes in the market,
potential downturns in economic conditions, foreign exchange fluctuations,
regulatory requirements, competition, risks associated with the rebuild of
PM1, the terms and conditions relating to the financing of the PM1 rebuild,
and other risk factors listed from time to time in the Corporation's public
filings. These risks, as well as others, could cause actual results and
events to vary significantly. Fortress Paper Ltd. does not undertake any
obligations to release publicly any revisions for updating any voluntary
forward-looking statements.
Not for distribution to United States newswire services or for
dissemination in the United States.
19.02.2010 10:04Ad hoc announcement, Financial News and Media Release distributed by DGAP. Medienarchiv atwww.dgap-medientreff.deandwww.dgap.de---------------------------------------------------------------------------
Datum: 19.02.2010 - 10:04 Uhr
Sprache: Deutsch
News-ID 17072
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