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Pope & Talbot, Inc. Receives Financing Commitment From Lenders
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Portland, Oregon, USA, 02 June 2006 -- /PRNewswire/ -- Pope & Talbot, Inc. (NYSE:POP) and its wholly-owned Canadian subsidiary, Pope & Talbot Ltd. ("Limited"), today reported that they have signed a commitment letter for a new credit facility. The company said that it intends to use proceeds to refinance its Halsey pulp mill leases, its existing Canadian and U.S. revolving credit facilities, and its receivable sales arrangement.

Under the terms of the commitment letter signed on 30 May 2006, Ableco Finance LLC and Wells Fargo Financial Corporation Canada committed to provide USD 325 million for a senior secured credit facility, subject to the satisfaction of the conditions in the commitment letter and draft Credit Agreement. The new credit facility will consist of two term loans totaling USD 250 million, and a USD 75 million revolving credit facility, of which USD 40 million will be available for cash borrowings and USD 35 million for letters of credit. The new credit facility will be secured by substantially all of the company's assets, and will have a term of approximately six years. The company expects the new Credit Agreement to be signed and effective by the end of June 2006; however, there can be no assurance that all closing conditions will be satisfied and the transaction completed.

Lehman Brothers Inc. arranged and advised the company on the transaction. Additional information regarding the commitment letter and the proposed new credit facility will be contained in a Form 8-K to be filed by the company with the SEC today.

Pope & Talbot is dedicated to the pulp and wood products businesses. The company is based in Portland, Oregon, and traded on the New York Stock Exchange under the symbol POP. Pope & Talbot was founded in 1849 and produces pulp and softwood lumber in the United States and Canada. Markets for the company's products include the United States, Europe, Canada, South America, Japan, and other Pacific Rim countries. For more information on Pope & Talbot, please check the Web site www.poptal.com.


Source: Pope & Talbot, Inc.
 

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