TSX: WEF
VANCOUVER, BC, July 21, 2021 /PRNewswire/ - Western Forest
Products Inc. (TSX: WEF) ("Western" or the "Company") announced
today the transition of its current Credit Facility into a
$250 million Sustainability-Linked
Credit Facility (the "Amended Credit Facility"), further
demonstrating Western's leadership in sustainability.
As part of the transition, the maturity of the Amended Credit
Facility has been extended to July 21,
2025 and will continue to include an accordion feature which
allows Western to increase the aggregate amount available up to
$350 million, subject to lender
approval. The pricing grid and covenant package of the Amended
Credit Facility is consistent with the current Credit Facility and
will provide increased flexibility for Western to execute on its
strategic priorities.
The Amended Credit Facility incorporates incentive pricing terms
that can reduce or increase Western's borrowing costs by up to 5
basis points based on the outcome of various sustainability-linked
goals. Western has selected goals that are linked to improving
health and safety performance, increasing workforce diversity and
advancing mutually beneficial First Nations relationships. These
goals are consistent with Western's core values and strategic
priorities.
"Our Sustainability-Linked Credit Facility further demonstrates
Western's strong leadership and commitment to industry leading
sustainability and ESG practices," said Don
Demens, President and Chief Executive Officer. "By aligning
the borrowing costs of our Credit Facility directly to
sustainability-linked goals, we are holding ourselves accountable
to continuous improvement and advancement of our sustainability and
ESG initiatives."
The Company plans to utilize the Amended Credit Facility to
support the execution of its strategic growth initiatives and for
general corporate purposes.
Royal Bank of Canada acted as
Sole Bookrunner, Co-Lead Arranger, Administrative Agent and
Sustainability Structuring Agent, partnering with Western to
integrate the sustainability-linked goals into the Amended Credit
Facility. The lending syndicate also included The Bank of
Nova Scotia as Co-Lead Arranger,
Canadian Imperial Bank of Commerce, Well Fargo Bank and The
Toronto-Dominion Bank.
About Western Forest Products Inc.
Western is an integrated forest products company building a
margin-focused log and lumber business to compete successfully in
global softwood markets. With operations and employees located
primarily on the coast of British
Columbia and Washington
State, Western is a premier supplier of high-value,
specialty forest products to worldwide markets. Western has a
lumber capacity in excess of 1.1 billion board feet from eight
sawmills and four remanufacturing facilities. The Company sources
timber from its private lands, long-term licenses, First Nations
arrangements, and market purchases. Western supplements its
production through a wholesale program providing customers with a
comprehensive range of specialty products.
Forward-looking Statements
This press release contains statements that may constitute
forward-looking statements under the applicable securities laws.
Readers are cautioned against placing undue reliance on
forward-looking statements. All statements herein, other than
statements of historical fact, may be forward-looking statements
and can be identified by references to future periods. Although
such statements reflect management's current reasonable beliefs,
expectations and assumptions, there can be no assurance that
forward-looking statements are accurate, and actual results or
performance may materially vary. Many factors could cause our
actual results or performance to be materially different, including
factors referenced under the "Risks and Uncertainties" section of
our MD&A in our 2020 Annual Report dated February 18, 2021.
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SOURCE Western Forest Products Inc.
