IAM Private Debt Corp., the private corporate debt group of Integrated Asset Management Corp. (TSX: IAM) has provided a $40 million loan to Fortress Bioenergy Ltd., a wholly owned subsidiary of Fortress Paper Ltd. (TSX: FTP). The transaction closed on February 2, 2017.
Fortress Bioenergy is the owner and operator of the electricity cogeneration facility located at the Fortress Specialty Cellulose Mill in Thurso, Quebec.
The loan was the first investment made by the IAM Infrastructure Debt Fund, a $347 million fund closed in September 2016..
“With this loan we have launched the investment program for our Infrastructure Debt Fund, taking advantage of our extensive experience in infrastructure lending, having provided financing for toll bridges, wind farms, solar energy, biomass and cogeneration facilities and municipal waste treatment. We are excited to support another operational bio-energy project in the province of Quebec. Fortress Paper continues to invest in their Thurso, Quebec facilities and we are pleased to be part of the financing team,” said Philip Robson, President of IAM Private Debt Corp.
Fortress Paper operates internationally in two distinct business segments: dissolving pulp and security paper products. Fortress Paper operates its dissolving pulp business at the Fortress Specialty Cellulose Mill located in Canada, which has expanded into the renewable energy generation sector with the construction of a cogeneration facility. Fortress Paper operates its security paper products business at the Landqart Mill located in Switzerland, where it produces banknote, passport, visa and other brand protection and security papers.
photo credit: Fortress Paper