Pope & Talbot Receives $127.5 Million of Its Softwood Duties
18 November 2006 - 5:56AM
Business Wire
Pope & Talbot, Inc. (NYSE:POP) today confirmed it has received
a pre-tax refund, including interest, of $127.5 million for duties
deposited with U.S. Customs since May 2002 on its Canadian lumber
sold in the United States. The payment resulted from the 2006
Softwood Lumber Agreement between the United States and Canada,
which went into effect on October 12, 2006. The refund was paid by
the Export Development Corporation (EDC), which purchased the
Company�s rights associated with the refund of the duties. "We are
pleased to have timely resolution of this element of the Softwood
Lumber Agreement.� said Michael Flannery, Chairman and Chief
Executive Officer. �The refund will serve to reduce our debt,
improve our capital position and give us additional flexibility to
meet our operating requirements.� The refund represents
substantially all of the funds expected to be received by Pope
& Talbot from the EDC. The refund is expected to have a
positive effect upon the Company�s fourth quarter earnings. With
the funds, the Company intends to pay $63.0 million to reduce its
term borrowings during the coming week, consistent with the terms
of its credit agreement. This payment will not be subject to
prepayment premium. The balance of the refund is expected to be
used for discretionary principal prepayments and to fund working
capital liquidity demands. Pope & Talbot is a pulp and wood
products company. The Company is based in Portland, Oregon and
trades on the New York stock exchange under the symbol POP. Pope
& Talbot was founded in 1849 and produces pulp and softwood
lumber in the U.S. and Canada. Markets for the Company's products
include: the U.S.; Europe; Canada; South America; Japan; and other
Pacific Rim countries. For more information on Pope & Talbot,
Inc., please check the website: www.poptal.com. Pope & Talbot,
Inc. (NYSE:POP) today confirmed it has received a pre-tax refund,
including interest, of $127.5 million for duties deposited with
U.S. Customs since May 2002 on its Canadian lumber sold in the
United States. The payment resulted from the 2006 Softwood Lumber
Agreement between the United States and Canada, which went into
effect on October 12, 2006. The refund was paid by the Export
Development Corporation (EDC), which purchased the Company's rights
associated with the refund of the duties. "We are pleased to have
timely resolution of this element of the Softwood Lumber
Agreement." said Michael Flannery, Chairman and Chief Executive
Officer. "The refund will serve to reduce our debt, improve our
capital position and give us additional flexibility to meet our
operating requirements." The refund represents substantially all of
the funds expected to be received by Pope & Talbot from the
EDC. The refund is expected to have a positive effect upon the
Company's fourth quarter earnings. With the funds, the Company
intends to pay $63.0 million to reduce its term borrowings during
the coming week, consistent with the terms of its credit agreement.
This payment will not be subject to prepayment premium. The balance
of the refund is expected to be used for discretionary principal
prepayments and to fund working capital liquidity demands. Pope
& Talbot is a pulp and wood products company. The Company is
based in Portland, Oregon and trades on the New York stock exchange
under the symbol POP. Pope & Talbot was founded in 1849 and
produces pulp and softwood lumber in the U.S. and Canada. Markets
for the Company's products include: the U.S.; Europe; Canada; South
America; Japan; and other Pacific Rim countries. For more
information on Pope & Talbot, Inc., please check the website:
www.poptal.com.
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