UPDATE 1-TimberWest to raise C$60 mln in bought deal financing

* Says to offer 12 mln units at C$5 each

* Pricing at a discount of abt 9 pct over Monday’s close

* Says proceeds to be used to repay debt

April 27 (BestGrowthStock) – Canada’s TimberWest Forest Corp
(TWF_u.TO: ) said it would raise C$60 million in a discounted
bought deal financing and use the proceeds mainly to repay
debt.

The timber and land management company said it would offer
12 million stapled units to BMO Capital Markets at C$5 each, a
discount of about 9 percent to their Monday’s closing price.

The company also granted underwriters an overallotment
option of 15 percent more units.

The offering is expected to close on or about May 18,
TimberWest said in a statement.

TimberWest also said it agreed with its lenders, regarding
an amendment to its bank loan agreement, to remove the
requirement that the company pay interest on its convertible
debentures by issuing additional convertible debentures in lieu
of cash.

TimberWest, which expects to resume paying interest on its
convertible debentures in cash on July 15, said it cannot make
cash distributions on the stapled units unless its available
cash exceeds C$90 million in 2010, C$75 million in 2011, and
C$75 million in 2012.

Shares of the company closed down about 4 percent at C$5.27
Tuesday on the Toronto Stock Exchange.

Investment Advice

(Reporting by Arnika Thakur in Bangalore; Editing by Gopakumar
Warrier)

UPDATE 1-TimberWest to raise C$60 mln in bought deal financing