LP secures new financing

Louisiana-Pacific, a leading producer of engineered wood products and other building materials, has completed a major refinancing package that has been in the works since last summer, according to company officials.

The Nashville, Tenn.-based company has modified the covenants associated with its senior unsecured loans that mature in August 2010. LP has also secured a $100 million asset-based credit facility with Bank of America and the Royal Bank of Canada; the loan, which is secured primarily with accounts receivable and inventory, with a second lien on certain U.S. properties,  has a three-and-a-half year term and can be increased in size in the future under certain conditions. It is subject to the retirement of LP’s remaining $73.4 million of senior unsecured notes by Feb. 15, 2010.

On Feb. 27, 2009, LP reported a loss of $340 million for its last fiscal quarter. For 2008, the wood products supplier posted a net loss of $579 million.