Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.

Bullboard - Stock Discussion Forum Canfor Corp T.CFP

Alternate Symbol(s):  CFPZF

Canfor Corporation is engaged in the manufacturing of high-value low-carbon forest products, including dimension and specialty lumber, engineered wood products, pulp and paper, wood pellets, and green energy. The Company’s segments include lumber and pulp and paper. It produces renewable products from sustainably managed forests at more than 50 facilities across its diversified operating... see more

TSX:CFP - Post Discussion

Canfor Corp > Upcoming Large Acquisition
View:
Post by Apaulson on Oct 29, 2024 7:52am

Upcoming Large Acquisition

The duty receivable loan was raised to generate liquidity for an upcoming large acquisition.  They don't need cash sitting on the balance sheet to do nothing.  Why would you take on a loan at a higher interest rate than what you're paying on your undrawn operating line?  At the end of 3Q, Canfor had consolidated cash and cash equivalents of $525mm and available undrawn operating line facilities of $1.3bn.


Sean Steuart: Thanks. Good morning, everyone. A couple of questions. Pat, I'll start with the loan against the duty receivable hoping you can give us some of your rationale there given you already have a strong balance sheet, and it looks like the borrowing costs, depending on the time frame here could be reasonably high. I guess the read-through is either you're expecting this is going to be a very drawn out process towards any sort of resolution on the trade file or do you feel the need to bolster an already strong balance sheet ahead of maybe a difficult market environment or ahead of potential M&A opportunities. Can you give us some more context on the rationale, Pat or Don, on that front?

Pat Elliott: Yes, sure, Sean. I mean you're right, there's a timing call in there for sure. I think on both sides of the equation. I can't tell you when this will settle. We're not -- we're on the record as sort of identifying. We don't see a near-term settlement. Canfor has over $725 million on deposit. And with the rates increasing here at 16% and then probably doubling or more again next year, we're going to have a lot more on deposits. So for us, the opportunity to take some of the money off the table even at a discount seem to make some sense. There's no specific use of funds we have in mind, but just the flexibility and these opportunities maybe don't come along all the time. It took us a while to do it. And so while it was there, we thought it was sort of prudent to take sort of 40% of our current exposure off the table. And that's how we came to do it now, Sean.

Comment by Catscratch on Nov 04, 2024 8:41am
Or maybe multiple small acquisitions... Should buy the rest of Pulp.  Business seems to be right -sized, finally cash flow positive and available at a very low valuation.
The Market Update
{{currentVideo.title}} {{currentVideo.relativeTime}}
< Previous bulletin
Next bulletin >

At the Bell logo
A daily snapshot of everything
from market open to close.

{{currentVideo.companyName}}
{{currentVideo.intervieweeName}}{{currentVideo.intervieweeTitle}}
< Previous
Next >
Dealroom for high-potential pre-IPO opportunities