DBRS Assigns Provisional Ratings to Norbord Inc.’s Senior Secured Notes and Senior Unsecured Notes

DBRS has today assigned a provisional rating of BB and RR3 to Norbord Inc.’s (Norbord or the Company) proposed issuance of approximately $165 million Senior Secured Notes. Additionally, DBRS has also assigned a provisional rating of B and RR6 to Norbord’s proposed offering of approximately $75 million Senior Unsecured Notes. The trends are Stable.

Norbord announced its intention, subject to market and other conditions, to launch the offerings today. DBRS expects Norbord to use the proceeds ($240 million) from these issues to repay the 7¼% debentures maturing on July 1, 2012.

The Senior Secured Notes will be senior secured obligations of Norbord and will rank senior in right of payments to all existing and future subordinated indebtedness and equal in right of payment to all of Norbord’s other first lien indebtedness.

Notes:
All figures are in U.S. dollars unless otherwise noted.

The applicable methodology is Rating the Forest Products Industry (June 2011), which can be found on our website under Methodologies.