Financing activities used cash of $3.8 million in the current quarter, compared to $11.1 million in the previous quarter and $8.0 million in the first quarter of 2012. Cash flows in the current period included a $3.6 million dividend declared and paid. In the first quarter of 2012, distributions paid to unitholders were $7.8 million. The previous quarter cash flows also included a $7.0 million repayment on the Company's operating bank loans. Finance payments in the current quarter were $0.2 million, in line with the same quarter in 2012, while finance payments in the previous quarter were $4.1 million principally relating to interest payments on the Company's debt.
Cash used in investing activities of $6.8 million in the current quarter principally related to equipment being built for the turbine upgrades at the Company's Northwood Pulp Mill planned for late 2013.
Liquidity and Financial Requirements
At March 31, 2013, CPPI had cash of $16.5 million and an operating loan facility of $110.0 million which was unused, except for $2.2 million reserved for several standby letters of credit. In addition, the Company has a separate facility with a maturity date of November 30, 2013, to cover a $7.5 million standby letter of credit issued to BC Hydro under a power generation agreement.
CPPI has US$110.0 million of senior debt that is scheduled for repayment on November 30, 2013. This debt is in the form of unsecured US dollar private placement notes and bears interest at 6.41%.
The Company remained in compliance with the covenants relating to its operating loans and long-term debt during the quarter, and expects to remain so for the foreseeable future.
On April 30, 2013, the Board of Directors declared a quarterly dividend of $0.05 per share, payable on May 21, 2013 to the shareholders of record on May 13, 2013.
NBSK pulp markets are projected to remain fairly challenging through the second quarter of 2013, but annual spring maintenance downtime should allow for modest price increases. The outlook for the second half of the year is more uncertain given the new hardwood and softwood pulp capacity projected to come online. For the month of April, the Company announced an increase in the North American NBSK pulp list price of US$30 per tonne to US$930.
Maintenance outages are planned at the Intercontinental and Northwood Pulp Mills during the second quarter of 2013. The Intercontinental outage will result in approximately 6,000 tonnes of reduced production. The Northwood outage will be extended to complete upgrades to the recovery boiler with an estimated 40,000 tonnes of reduced production, of which approximately 15,000 tonnes will fall in the second quarter with the balance in the third quarter.
The Company will be completing the installation of a new precipitator at the Prince George Pulp Mill and upgrades to both Northwood turbines during the fourth quarter of 2013. Incremental power generated will be used to displace electricity purchases and meet existing power sale commitments.
Kraft paper demand is slow heading into the second quarter and order files are light. However, customer inventories remain low and demand is projected to show some improvement in the coming months. Prices for bleached and unbleached papers in North America and Europe are projected to remain flat through the second quarter of 2013.
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