Intertape Polymer Group Inc. announced the extension of its asset-based loan facility of $200 million with a syndicated lending group led by Bank of America, Merrill Lynch, Pierce, Fenner & Smith and Wells Fargo Capital Finance.

The company has reached an agreement for an extension of the maturity of its ABL to February 2017 from March 2013. The new ABL maturity date can be accelerated to 90 days prior to August 1, 2014 (the maturity date of the company’s existing senior subordinated notes) if such notes have not been retired or if other conditions have not been met. Under the new agreement, the interest rate will increase modestly while several other modifications in the terms provide the company with greater flexibility.

“Our improved financial performance in 2011 and our debt reduction in the third and fourth quarters of 2011 enhanced our ability to extend the maturity of our ABL under favorable terms. This is an important step towards further improving our capital structure,” said Bernard J. Pitz, Intertape’s chief financial officer.

Increased cash flows from operations during the second half of 2011 allowed the company to reduce its total indebtedness by $18.1 million during the third quarter of 2011 and to achieve further reductions during the fourth quarter of 2011.

Intertape Polymer Group Inc. is a provider in the development and manufacture of specialized polyolefin plastic and paper-based packaging products and complementary packaging systems for industrial and retail use.