Vancouver – September 19, 2026 -- West Fraser Timber Co. Ltd. has entered into a new $500 million three-year term loan maturing in September 2029, with part of the proceeds retiring its existing $300 million term loan due in 2028.
New financing boosts liquidity to over $1.2 billion pro forma
The Company's $1 billion syndicated credit facility remains outstanding on existing terms, with approximately four years remaining to its May 2030 maturity. Interest on the term loan continues to be payable at floating rates based on US Base Rate Advances or SOFR Advances at the Company's option. The loan is repayable in whole or in part at any time without penalty, though amounts paid down cannot be redrawn.
Pro forma net debt to capital ratio stands at 5.4%
Had the refinancing been in place at the end of the second quarter, West Fraser would have reported a cash balance of $219 million, no draw on its syndicated credit facility, available liquidity of over $1.2 billion, and a net debt to capital ratio of 5.4%.
"Entering into a new $500 million term loan strengthens our near-term liquidity position and provides additional financial flexibility," said Sean McLaren, President and CEO of West Fraser. "We appreciate this signal of confidence from our banking partners as we continue to execute our business strategy."
Board declares quarterly dividend of $0.32 per share
West Fraser has declared a quarterly dividend of US$0.32 per share on its Common shares and Class B Common shares, payable October 19, 2026 to shareholders of record on September 29, 2026. The dividends are designated as eligible dividends under subsection 89(14) of the Income Tax Act (Canada) and applicable provincial legislation. Dividends are declared and payable in U.S. dollars, though shareholders may elect to receive payment in Canadian dollars.