By: The Working Forest Staff
VANCOUVER, BC, July 21, 2021 /CNW/ – Western Forest Products Inc. has announced the transition of its current Credit Facility into a $250 million Sustainability-Linked 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 that 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, Wells Fargo Bank, and The Toronto-Dominion Bank.