Louisiana-Pacific has signed a deal for a $100 million asset-backed credit line with Bank of America and Royal Bank of Canada. The agreement follows a recent debt issuance and the loosening of certain terms of an existing series of notes. LP shares (Ticker: LPX) are up 6 percent in the first half hour of trading.
"These transactions are an important part of our overall effort to strengthen our financial position and extend the maturities of our debt," said Curt Stevens, LP's chief financial officer. "We believe that this capital availability, along with our previously announced actions to reduce costs and conserve cash, will allow us to get through these poor market conditions and position ourselves to take advantage of the economic rebound as it occurs."