Redskin212

For the life of me I do not understand why BB does not simply issuing $500-600 million of equity at these prices and then strike a deal to repurchase the convertibles held by Fairfax. AMC has been able to issue equity into these spikes, BB should be able to as well. Dazel - you are probably correct Chen is asleep, but so then is the Board where Fairfax is full represented.

Interfor Continues to Grow with Acquisition of Four US Sawmills from Georgia-Pacific INTERFOR CORPORATION (“Interfor” or the “Company”) (TSX: IFP) announced today that it has reached an agreement with Georgia-Pacific Wood Products LLC and GP Wood Products LLC (collectively “Georgia-Pacific”) to acquire four of its sawmill operations located in Bay Springs, MS, Fayette, AL, DeQuincy, LA and Philomath, OR (collectively the “Sawmill Operations”). The total purchase price of US$375 MM, which includes working capital, will be funded entirely from cash on hand. The Sawmill Operations are highly complementary to Interfor’s existing platforms in the US South and the US Northwest, and the acquisition will support accelerated growth and enhance the Company’s position to benefit from robust market conditions. The acquisition will be immediately accretive to Interfor’s earnings and is expected to provide attractive returns in both the near-term and over the long-term. “This acquisition enhances Interfor’s growth-focused strategy as a pure-play lumber producer, and provides significant economies of scale given the complementary geographic fit with our existing US operations” said Ian Fillinger, President and Chief Executive Officer. “We’re excited to acquire these high-quality assets as part of our balanced approach to capital allocation to drive shareholder value.” The Sawmill Operations have a combined annual lumber production capacity of 720 million board feet. The Bay Springs, Fayette and Philomath sawmills are currently operating on a full-shifting basis. The DeQuincy sawmill, which was idled in May 2020 during the COVID-19 pandemic, has an annual capacity of 200 million board feet. Interfor is currently evaluating its strategy and options for the site, including re-start plans. On a pro-forma basis, Interfor’s total annual lumber production capacity will increase to 3.9 billion board feet, of which 3.0 billion board feet or 77% will be US-based and not subject to softwood lumber duties. Interfor’s US South production capacity will grow by 500 million board feet, or 29%, to 2.2 billion, while production capacity in the US Northwest will grow by 220 million, or 40%, to 770 million board feet. Following the transaction, 57% of Interfor’s production capacity will be in the US South, 20% will be in the US Northwest and the remaining 23% will be in British Columbia. The Sawmill Operations, excluding the DeQuincy sawmill, generated US$53 million of EBITDA1 in the first quarter of 2021, reflecting an EBITDA1 margin of US$508 or $643 per thousand board feet. This compares favorably with Interfor’s EBITDA margin of $589 per thousand board feet for the same period. Following the completion of this transaction Interfor will continue to have significant financial flexibility to consider additional value-creating capital deployment options. As of April 30, 2021 Interfor was in a net cash position of approximately $380 million. Proforma this acquisition and the special dividend announced on May 12, 2021, Interfor’s Net Debt to Invested Capital ratio as of April 30, 2021 would increase to 13%. Similarly, proforma liquidity as of April 30, 2021 would be approximately $500 million, before consideration of significant additional borrowing capacity available under existing credit limits and continued strong near-term operating cash flows. The completion of the acquisition is subject to customary conditions and regulatory approvals for a 2 transaction of this kind and is expected to close in the third quarter of 2021.

I just checked last years annual report - they should still have an average life of about 2.5 years. Lots of time!

Updated website as well: www.sequantre.com

+1 Well deserved!

Touch bills once. I have done this for over 35 years. You know you are going to pay them anyway, so as soon as I get them I pay them. Before online payments, I would write post dated checks and now I just set up a payment when I receive my bill.

Nice! Just to give a little history, Fairfax paid about $8.50/share for about 70% of Ridley right at the height of the financial crisis in September 2008. So roughly 5x their investment in 7 years. Very well done! http://www.fairfax.ca/news/press-releases/press-release-details/2008/Purchase-of-Ridley-Shares/default.aspx

"By doing this, we keep the tradition alive and growing. For many of us younger value investors, as time goes on Sanjeev and Norm may not be able to keep doing this, eventually we'll have to carry the torch and keep doing it." You are correct and more importantly both Sanjeev and Norm are currently stretch very thin during the Fairfax annual meeting. Adding new events or conferences is great provided the running and organization is driven by new blood. Sanjeev and Norm I am sure will assist with their experience but their time is another matter.

That is fantastic!! Well said. Vote the few shares I have for Groveland today - would love to see a groundswell vote against Sardar.

I'm really confused. Not even kidding. Not sure if what's going on is selective memory like is so often the case given that this is the corner of B. and Fairfax but they did one about 1 year and a couple of months ago. http://www.fairfax.ca/news/press-releases/press-release-details/2013/Fairfax-Completes-C431000000-Bought-Deal-Financing/default.aspx And that one was to raise money because they had to put a bunch of it into Blackberry as well as supplement the capital needed because their hedges forced them to fork over $2 billion in cash in 2013. So I don't understand the shock, the out of character, and never thought they'd do a bought deal comments. At least for this one, looks like you guys have a consensus that it is to buy a quality insurer. Disclaimer: I haven't reviewed the deal myself or anything about Fairfax since the last quarter, so I have zero opinion on the deal. My review process is a consistent one for all companies I follow/care about. I wait for the annual report to come out as well as the letter. And I first read the whole annual report and decide for myself how they did and then read the Chairman's letter to see what he has to say about how they did to see if I agree. I haven't even reviewed the transcripts from the recent conference calls. So I have no comment other than pointing out the other bought deal in the not too distant past. +1

I would agree - but I believe the annual dividend it really a way to pay Prem the salary he deserves on an equal footing to all shareholders. Remember the man's salary hasn't gone up in years.

And I thought Prem said his shares were inexpensive? I knew they would have to raise equity for this transaction. I am sure a bond deal of a similar size is not far behind. They need to keep the debt/equity ratio at about 25% (where it has been for years).

Ain't that the truth! About 10-12 years ago I was living in the exact same neighborhood while single. I remember my expenses well for the year I was between jobs :) I got my monthly expenditures down to about $3k/month of which $2k was rent and utilities! So conservatively about $40k to be single in Arlington vs 4 times that when married with 2 kids. Like you it is all worth it, but I think it is a learning point for the younger members on the board. Start young, save lots of money when you are single and invest wisely because you WILL need it when you are married with kids!

Wow! $15K for property taxes in Arlington...crazy. You guys better have the best sewer system, roads, transit and city services than anyone else I know. Cheers! judging by the size of the taxes, maintenance, and utilities relative to mortgage, I think Mr. Redskin dropped a big chunk of cash on a down payment. Redskin, I appreciate you sharing. I'll probably end up in the DC area in a 1.5 yrs so I found the breakdown useful. thepupil - very observant with regard to my down payment. Actually put 25 % down and then paid for a big reno in cash, so my equity is around 60-65%. When I moved to DC 20 years ago from Toronto, I thought DC was a reasonably priced big city. Times have changed and I would now say it is a fairly expensive big city. Not first tier like NYC, San Fran, LA but definitely second tier in terms of cost.

Wow! $15K for property taxes in Arlington...crazy. You guys better have the best sewer system, roads, transit and city services than anyone else I know. Cheers! I wish are services were that good - schools are some of the best in the area, but our services are pretty average, lots of excess spending by the county and excess taxing to keep our AAA rating