Noranda Operating Trust issues C$90 million senior secured notes and enters into a $150,000,000 asset-based credit facility

Date Closed: 7/28/2011

Value: C$240 million

On July 28, 2011, Noranda Operating Trust (Noranda) closed its private placement of $90,000,000 aggregate principal amount of 6.875% senior secured notes due 2016 (the Notes). The underwriters for the note issuance were CIBC World Markets Inc. and Scotia Capital Inc.

Concurrently with the closing of the Notes offering, Noranda entered into a 5-year asset-based credit facility (the ABL Facility) with CIBC Asset-Based Lending Inc., as co-lead arranger and administrative agent, and Roynat Asset Finance, a division of Roynat Inc., as co-lead arranger. The ABL Facility provides for borrowing availability of up to $150,000,000.

The net proceeds from the sale of the Notes, together with borrowings under the ABL Facility, were used to repay all amounts outstanding under Noranda's existing bridge credit facility.  Borrowings under the ABL Facility will also be used for working capital and general corporate purposes.

The agent and lenders under the ABL Facility were represented by BLG with a team led by Howard Silverman, and included Pierre Côté, Caroline Emond, Kendall Andersen, Vivian Tang, Sonia Molodecky, and Marjolaine Hémond Hotte