Western Forest Products Inc.

Western Forest Products Inc.

December 14, 2010 15:20 ET

Western Extends Its Credit Facilities

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 14, 2010) - Western Forest Products Inc. (TSX:WEF) ("Western" or "the Company") announced today that it has finalized agreements to amend both its term loan and revolving credit line facilities.

Under the terms of the amended term loan agreement, the maturity dates of Western's $75 million revolving term loan and $32 million non-revolving term loan have been extended to June 14, 2013 and December 14, 2012, respectively. In addition to the extended maturities, pricing for the term loans has significantly improved.

Under the terms of the amended revolving credit line agreement, the new maturity date has been extended to December 14, 2015 and overall availability has also improved.

All other terms and conditions of the credit facilities remain substantially unchanged.

"We appreciate the confidence and support of our lenders as we continue to execute our business plan. These amendments further strengthen Western's financial position and will allow us to pursue our longer term strategies that have been placed on hold as a result of the global recession," said Dominic Gammiero, Western's CEO.

Forward Looking Statements and Information

This press release contains statements which constitute forward-looking statements and forward-looking information within the meaning of applicable securities laws. Those statements and information appear in a number of places in this document and include statements and information regarding our current intent, belief or expectations primarily with respect to market and general economic conditions, future costs, expenditures, available harvest levels and our future operating performance, objectives and strategies. Such statements and information may be indicated by words such as "estimate", "expect", "anticipate", "plan", "intend", "believe", "should", "may" and similar words and phrases. Readers are cautioned that it would be unreasonable to rely on any such forward-looking statements and information as creating any legal rights, and that the statements and information are not guarantees and may involve known and unknown risks and uncertainties, and that actual results and objectives and strategies may differ or change from those expressed or implied in the forward-looking statements or information as a result of various factors. Such risks and uncertainties include, among others: general economic conditions, competition and selling prices, changes in foreign currency exchange rates, labour disruptions, natural disasters, relations with First Nations groups, changes in laws, regulations or public policy, misjudgements in the course of preparing forward-looking statements or information, changes in opportunities and other factors referenced under the "Risks and Uncertainties" section of our MD&A in our 2009 Annual Report dated March 3, 2010. All written and oral forward-looking statements or information attributable to us or persons acting on our behalf are expressly qualified in their entirety by the foregoing cautionary statements. Except as required by law, Western does not expect to update forward-looking statements or information as conditions change.

Western Forest Products

Western is an integrated Canadian forest products company and the largest coastal British Columbia woodland operator and lumber producer with an annual available harvest of approximately 7.4 million cubic metres of timber of which approximately 7.1 million cubic metres is from Crown lands and lumber capacity in excess of 1.5 billion board feet from eight sawmills and four remanufacturing plants. Principal activities conducted by the Company include timber harvesting, reforestation, sawmilling logs into lumber and wood chips and value-added remanufacturing. Substantially all of Western's operations, employees and corporate facilities are located in the coastal region of British Columbia while its products are sold in over 25 countries worldwide.

Contact Information

  • Western Forest Products Inc.
    Dominic Gammiero
    Chairman and CEO
    (250) 715-2207
    Western Forest Products Inc.
    Brian Cairo
    CFO and Corporate Secretary
    (250) 715-2258