West Fraser Timber Co. Ltd. has entered into a new US$500-million loan agreement that will mature in 2029, strengthening the Canadian forestry company’s liquidity position as it navigates ongoing industry pressures.
According to the Vancouver-based company, part of the proceeds from the new financing will be used to retire its existing US$300-million term loan, which is scheduled to mature in 2028.
West Fraser CEO Sean McLaren said the new loan provides the company with additional financial flexibility in the near term.
The company also announced a quarterly dividend of 32 cents US per share, keeping the payout unchanged from the dividend declared in June.
The new financing comes as Canadian forestry companies continue to face a difficult operating environment, with U.S. tariffs putting pressure on earnings and adding to broader industry challenges.
Earlier this month, forestry groups in British Columbia wrote to Premier David Eby warning that the sector had reached a “breaking point”. The groups called for urgent government action to address a range of issues, including slow-moving provincial processes and steep U.S. tariffs affecting the industry.
