Belfast-based startup GO Lab Inc., which plans to manufacture wood fiber insulation at the former UPM Paper factory in Madison, will sell $ 85 million in tax-exempt green bonds to help fund the $ 130 million renovation of the plant.
The bonds will be issued by the Finance Authority of Maine, which approved them earlier this year. The bonds are expected to be valued in early December and the trade is expected to close around 10 days later. The equity fundraising will end with the sale of bonds, as well as an investment in the new market tax credit.
GO Lab plans to produce three wood fiber insulation products for the residential and light commercial construction markets under the TimberHP brand. GO Lab Madison LLC, a subsidiary of GO Lab Inc., will use the proceeds from the bond sale, in combination with equity, government grants and loans, and tax credits, to renovate the paper mill. .
Partners at the Madison mill, Finnish company UPM-Kymmene Inc. and Northern SC Paper Corp., a subsidiary of the New York Times Co., terminated their joint venture and shut down Madison Paper Industries in May 2016. GO Lab a closed its purchase of the plant for $ 1.9 million three years later.
Go Lab plans to hire 120 workers at the plant.
GO Lab selected Cianbro Corp. to be the prime contractor for the Madison redesign.
“We are delighted to have Cianbro as a partner in bringing the Madison plant back to life,” said Joshua Henry, president of GO Lab.
Photo / Tim Greenway
Joshua Henry, co-founder and president of GO Lab Inc.
“Cianbro built this facility and has done many subsequent upgrades over the years. This factory is a testament to the quality of Cianbro’s work and we are grateful that their experience and craftsmanship will guide the creation of the first wood fiber insulation manufacturing plant in North America.
GO Lab, based in Belfast, was founded in 2017 to develop and manufacture wood fiber insulation products. Fiberboard, mattresses and loose insulation products are an easy replacement for other insulation on the market.
Wood fiber insulation products are easy and safe to install, renewable, recyclable, non-toxic and will have a negative carbon footprint.
As part of GO Lab’s current production schedule, the company plans to produce TimberHP bulk insulation in the first quarter of 2023, followed by fibreboard and fibreboard in the second and third quarters of 2023, respectively.
The bonds have been designated as “green bonds” as defined in the International Capital Market Association’s 2021 Green Bond Principles – based on the opinion letter provided by Vigeo Eiris, a subsidiary of Moody’s Investors Service.
GO Lab qualifies for this type of solid waste and recycling bond financing because the company will use residual softwood chips, which is the waste stream from timber harvesting and sawing, to make wood. wood fiber insulation for the residential and light commercial construction markets.
Citigroup Global Markets is the underwriter of the sale, with Pierce Atwood LLP acting as legal counsel to GO Lab.