7 tyr Page A2 - The Terrace Standard, Wednesday, February 24, 1993 Complex and tricky deal =F UCU or 7 7 FF 7~ O™ ine nn ale =~ Te F ~— F 3 la, ie OT we JOB ACTION in works for Orenda mill TERRACE — The search by Orenda Forest Products for nearly $500 million to develop its pulp and paper mill takes in nine banks and two governments. It consists of two main sources of money — loans to cover $397 million of the cost and raising $99 million in equity in return for an ownership Position in the pro- ject. The loan amount is for the con- struction and operating. equip- ment needed for the mill while the $99 million covers engineer- ing, design and working capital. Those nine banks in Jine to lend ibe money are led by the Bank of Montreal and GE Capital Corpo- ration, a division of General Elec- tric, ‘Details of the financing proposal were released last week by senior Grenda officials. Company senior vice president Frank Foster described- the proposal as complex and involy- ing a Jarge amount of players. The first of the governments in- volved is the provincial govern- ment which has been asked for a $100 million loan guarantee. That’s to provide what Orenda senior vice president Frank Foster calls a ‘level of comfort”’ for the banks, ~~ Provincial officials from the B.C. Investment Office are now working on information to be given the provincial cabinet wilhin the next several weeks. A second loan guarantee is now being worked on through the Fin- nish government. That's because Orenda wants to use paper making machinery made by Valmet, a Finnish com- pany. The Finnish government, as an incentive to-develop exports, has a program to guarantee part of the cost of goods sold overseas once a deal has been finalized. For this project, the amount could be 85 per cent of the cost of the paper making machinery and that could total $85 miltion. In effect, the Finnish govern- ment would be guaranteeing part of the overall loan package being sought by Orenda, “We have a shopping list, from the: banks we're’ satisfying ~ for their participation,” said Foster in. outlining: the loan ‘guarantee provisions, Orenda officials are heading off to Finland in early March to work out-final details of. the paper making machinery purchase. Some of the $99 million Orenda needs to raise in equity financing will come from companies that have done business in Finland. They sold goods to Finland with the understanding they would return some of the revenne by investing in projects that use Finnish goods, “If a company sells something fo Finland: the Finnish govem- ment says ‘All right, buy some- thing off of us to balance our Loan guarantee debated TERRACE — The provincial government should give Orenda Forest Products a loan guarantee because of the taxes and econom- ic activity its planned pulp and paper mill will bring, says mayor Jack Talstra. “If the provincial government is going to profit, it should share some of the risk," said Talstra last week. The mayor added that govern- ment loan guarantees represent a trend that will continue into the next century. “The proponents are very op- timistic about their project. And we have the premier going around the world saying to invest in B.C., it's a great province. There’s sunshine just around the comer.”’ “So the world says show us. But I’m not suggesting there should be gobs of money put into private organizations, *? said Tal- Stra. | “These *” people; (financial lenders) look for security, just like a mortgage which has security. In this case it is who owns the timber supply. The provincial government owns the timber supply so they're looking for security,’ he continued. “As long as the government owns the timber supply, it should do something,” said Talstra. But Skeena MLA Helmut Gies- brecht says public money shouldn’t be committed unless it gets some security. “Where is the security and pro- teclion- if there is a default? We end up carrying the can,’ . said Giesbrecht, ; “The problem is that without some security, it wouldn’t be a good use of the taxpayers’ money,’ he continued. “There’s a chance Orenda could sell the idea — and the loan guarantee because it would have some value. Where then is our security if someone else buys ‘the - .[: HONDA CUENT 1993 Cure Sedan LX OO Per month af Faclony order may be proj ject?” Giesbrecht continued, Yet the MLA said the govern.» ment might consider investing in a project if the risk is minimal’ - and the returns promising, ’ “T don’t know Jif that’s the case here but I suspect cabinet will be discussing a‘ number of things,” Giesbrecht said, ~ - He added that the Orenda pro- ject’s chance of some kind of government assistance would be aided if it could first come up - with capital commitments. ‘who have bought into the pro- > 9F trade’,’’ explained Foster. The remainder of the $99 mil- lion will come. from what Foster called ‘‘strategic partners, people ject”? Negoliations. along that line are still continuing, he said, “Foster added that Orenda will most: likely establish “a “separate company which will operate the pulp and:paper mill. $444-6-044 Friday, March 5 - Tickets: Adult $20 The Terrace Concert Society The Arts Club Theatre on National Tour with A Closer Walk With PATSY CLINE Tickets Available At Erwin’'s Jewellers, Skeena Mall ‘Sponsored mH the Terrace & District Teacher's Union Jour Sponsor: Canadian Airlines CLUB If you are receiving Social Assistance and want to find work, : please contact: Interconnect. - Suite 205 4650 Lazelle Avenue Terrace, B.C., V8G 1S8 (604) 635-7995 Frank Foster a. Presents ’ by Dean Reagan 8:00 pm R.E.M. Lee Theatre — Student/Senior $14 Canada Council Touring Office pba hit rhs dbndrabbr bar bbhbrrrbbrbikbbzrdtbdbbbsibbbbdoor POS SSS SCC CT TTC TT TTT eer Tree TTT TTT rere Tere eee “At New Corolla _ AE O4EM(AA) Inet: POI Not incl: all p prov, & .- fed, taxes, licances & Insurances. ER 8218 |, required We're Dealing Like Never Before On The Vou Won't Believe Your - FEATURES INCLUD .+ Dual remote conte ors ee —" 4450 GPTERRACE. ‘MOTORS TOYOTA ‘Canada's Oldest Toyola Dealership" | D.L. 5957 635-6553 4912 Hwy. 16 West Terrace, B.C. A HEALTHY PRESCRIPTION FOR AILING TAXPAYERS —— Your pharmacist’s solution tothe = Nasty diagnos threatening B.C’s health core LIMITED TIME OFFER. Includes: Power Steering and Brakes, Fold-own Rear Scatback, Child-Ptoof Rear Dour Locks, Adjustable Steering Column, Cup Holder, 1.5 Litre 102- -Horsepower Engine, All-Season . ‘Radial Tires and much more, TERRACE HONDA SALES 4838 HIGHWAY 16 WEST... TERRACE, B.C. 638-8171 , DL $920 year: VG Ty) a § (ees a "Ask pan iling dedlere for détails. Leas based on Civic Sedan LK Wg a a (EGBA brspead for 48 months for $228 per month (otal payments of ; ale any at downpayment plus approximately one month security Hager caquirtd- Glerelrage limit applies. Option to purchase available, OAC. Tatty HD tee hele Maat liesrerisingy and i insurance. Dealers may jeasa for lass, “Pharos are the best trained of all health are professionals in dealing with prescription ind: over the counter drugs. In fact, about 10, 000 times a year we step in to save someone from an adverse and possibly deadly reaction. | ‘Now we're. trying to use those skills to cure... major illness in our health core system - _ kjrocketing drug costs: | AVING TAXPAYERS MILUIONS he: British. Columbia Pharmac “Association has offered! the provin yovernment.a plan that can sav taxpayers up.to $50 million a: yea te each and every year — in health costs. a Boost the level, of health care and’ 7 3 STEPS 10 BETTER SERVICE Our plan will M@ Increase drug substitution is. up to 30% less expensive. MH Decréase waste of unused or unnecessary | drugs. co ae ‘safety to seniors and others. nee We'd like to share our new beatth- care prescription with you. __For more information about our, new prescription for health care, enph | contack:. | a8 The Bish (oni hay Aston _ - | 150-3751 Shell Roa, ‘Richmond, B.C. Vax aD. Telephone: 279-2053 ' ee em ele a. ks me ee