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BULLETIN: Tembec Acquisition of Nexfor Mills Credit Neutral For Both Aug 03
Standard & Poors, Aug 2003
Abstract
TORONTO (Standard & Poor's) Aug. 22, 2003--Standard & Poor's Ratings Services today said Tembec Inc.'s (BB/Stable/--) proposed acquisition of Nexfor Inc.'s (BBB/Stable/--) La Sarre, Que., and Senneterre, Que., sawmills will not affect the ratings on either company. Although the C$50 million transaction will put minor pressure on Tembec's already stretched balance sheet, the new sawmills should provide C$5 million-C$10 million in synergies with Tembec's existing sawmills in the region. The transaction also provides an additional source of long-term fiber for pulp and paper operations. Furthermore, the transaction could potentially be transferred to the recently announced joint venture between Tembec and Domtar Inc. (BBB-/Stable/--), which would cut Tembec's financial obligation for the new sawmills in half. Nexfor will use all proceeds...
Companies mentioned in this report are: Tembec Inc.,Domtar Inc.,Norbord Inc.
Action: S&P Event
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research type: News
This product is a is a brief one-page announcement of no more than 500 words with a quote from the analyst. It is media and investor focused with no accompanying commentary article.
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