Vancouver, British Columbia, Canada, 20 December 2010 -- West Fraser has completed an amendment of its committed revolving credit facility. Under the amendment, the term of the facility has been extended until December 2014, the overall credit amount reduced from CAD 600 million to CAD 500 million, the optional feature has been increased from CAD 100 million to CAD 150 million, and fees and credit spreads have been revised to reflect current market conditions. The cost of borrowing under the amended facility will vary with the company’s credit rating.
West Fraser also announced that its board of directors has approved a CAD 230 million capital expenditure program for 2011 that includes CAD 125 million approved in September 2010. The bulk of the approved expenditures will be focused on the company’s solid wood operations. These capital expenditures are in addition to the CAD 88.5 million Canadian pulp mill capital improvements, which will be funded by Green Transformation Program credits from the Canadian federal government.
"Although our industry is still in a fairly fragile state, we believe that this is the time to focus on improving our current operations” said Hank Ketcham, West Fraser’s chairman, president, and CEO.
West Fraser is an integrated wood products company producing lumber, wood chips, LVL, MDF, plywood, pulp, and newsprint. The company has operations in western Canada and the southern United States. West Fraser shares trade on the Toronto Stock Exchange under the symbol "WFT."