DBRS Finalizes the Provisional Rating of Norbord Inc.’s $240 Million Debt Issue at BB, Stable Trend

DBRS has today finalized the provisional rating of BB with a Stable trend to Norbord Inc.’s (Norbord) issue of $240 million Senior Secured Notes with a coupon rate of 5.375% due December 1, 2020 (the Notes).

The assignment of final rating confirms that the final documentation is consistent with that which DBRS had already reviewed when assigning the provisional rating to the issue on November 19, 2013.

DBRS expects Norbord to use the proceeds ($240 million) from this issuance to fully repay the existing $165 million 6.25% Senior Secured Notes due 2015 and $75 million 6.25% Senior Unsecured Notes due 2015.

The Notes will rank senior in right of payment to all existing and future subordinated indebtedness of the Issuer and equal in right of payment to all of the Issuer’s other First-Lien Indebtedness (including indebtedness under the Credit Facilities and the 2017 Notes).

Notes:
All figures are in U.S. dollars unless otherwise noted.

The applicable methodology/criteria are Rating Companies in the Forest Products Industry and DBRS Recovery Ratings for Non-Investment Grade Corporate Issuers, which can be found on our website under Methodologies.