VANCOUVER, BC (News release) -- Canfor Pulp Products Inc. announced that it has closed an amendment to its existing operating loan facility.

Under terms of the amendment, the Company granted security to Canfor Pulp's lenders and obtained a waiver of its financial covenants for the fiscal quarter ending December 31, 2025 (the "Covenant Relief Period"). During the Covenant Relief Period, the Company is subject to a minimum liquidity test of $10 million, effectively reducing its operating loan facility from $160 million to $150 million.

Following the Covenant Relief Period, the Company will continue to be subject to certain financial covenants, including a maximum net debt to total capitalization ratio of 55% and a minimum earnings before interest, taxes, depreciation and amortization ("EBITDA") interest coverage ratio of 1.5 times, which is effective if the net debt to capitalization ratio exceeds 42.5%.