West Fraser Timber has secured a new $500 million three-year term loan, with part of the proceeds to be used to retire an existing $300 million term loan due in 2028. The transaction also provides the company with additional liquidity and financial flexibility.
The new term loan matures in September 2029. West Fraser’s separate $1 billion syndicated credit facility remains outstanding on its existing terms and matures in May 2030.
Interest on the new term loan will continue to be payable at floating rates based on either U.S. Base Rate Advances or SOFR Advances, at West Fraser’s option. The loan may be repaid in whole or in part at any time without penalty, although amounts repaid cannot be redrawn.
On a pro forma basis, West Fraser said the refinancing would have resulted in a cash balance of $219 million at the end of the second quarter, with no borrowings under its syndicated credit facility and more than $1.2 billion in available liquidity. Its net debt-to-capital ratio would have stood at 5.4%.
Available liquidity and net debt to capital are company-reported capital-management measures and are not standardized under IFRS.
President and CEO Sean McLaren said the new financing strengthens West Fraser’s near-term liquidity position and provides additional financial flexibility as the company continues to execute its business strategy.
West Fraser also declared a quarterly dividend of US$0.32 per share on its common and Class B common shares. The dividend will be paid on October 19, 2026, to shareholders of record on September 29, 2026.
Dividends are payable in U.S. dollars, although shareholders may elect to receive payment in Canadian dollars.
West Fraser is a diversified wood products company with more than 50 facilities in Canada, the United States, the United Kingdom and Europe. Its products include lumber, OSB, LVL, MDF, plywood, particleboard, northern bleached softwood kraft pulp, paper, wood chips and other residual products.
