(OTTAWA) – August 4, 2009 – Export Development Canada (EDC) today announced that it provided CAD 12 million in financing to Teal Cedar Products (Teal), a British Columbia lumber product company.
“EDC is always looking to help strong Canadian companies that need a little bit of help to get through this global slowdown, and Teal is a great example of how EDC’s new powers can make a real difference in accessing credit,” said Stephen Poloz, Senior Vice-President, Financing Products Group, EDC.
The financing will be used for general corporate purposes, allowing for financial restructuring and additional liquidity during the credit crunch. The financing was provided on standard commercial terms.
Tom Jones, President and CEO of Teal, said, “the global recession has been particularly harsh on the forest products industry in Canada, and the EDC financing, enabled by federal government initiatives to counter the recessionary impacts, will allow Teal to work through one of the worst down cycles the industry has seen in decades.”
This transaction was facilitated under EDC’s temporary two-year broadening of its mandate to undertake domestic financing and insurance. EDC’s domestic powers were enacted on March 12, 2009.
Teal is coastal British Columbia’s largest private solid wood products company, operating in the lumber, shakes and shingles, and harvesting sectors. The company has annual sales of $200 million, and employs 1,000 people in 15 communities covering Vancouver & vicinity, Vancouver Island, Haida Gwaii, Fraser Valley and the B.C. Interior.
EDC is Canada’s export credit agency, offering innovative commercial solutions to help Canadian exporters and investors expand their international business. EDC’s knowledge and partnerships are used by more than 8,300 Canadian companies and their global customers in up to 200 markets worldwide each year. EDC is financially self-sustaining, a recognized leader in financial reporting and economic analysis, and has been recognized as one of Canada’s Top 100 Employers for eight consecutive years.
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Media contact:
Phil Taylor
Export Development Canada
Tel: (613) 598-2904
Blackberry: ptaylor@edc.ca
