Interfor Corporation has closed an early renewal and extension of its $265 million credit facility with its syndicate of major Canadian banks led by RBC Capital Markets.

The facility has been extended by over two years from the current maturity date of February, 2017 to a new maturity date of May, 2019. The new facility is for the same commitment amount, security and pricing grid as the existing facility. The renewal includes a number of improved provisions that will enhance the company’s ongoing financial flexibility and liquidity.

At September 30, 2015, Vancouver, BC-based Interfor had $103 million of available liquidity as defined under the previous bank agreements, and this availability will be increased by approximately $24 million on a pro forma basis, under the new provisions.

“Interfor has very strong and long standing relationships with its lending partners and we were pleased with their support on the renewal,” said John Horning, Interfor’s executive vice president and CFO. “Interfor continues to be committed to maintaining a prudent capital structure, including the use of free cash flow to reduce leverage.”

Interfor is a growth-oriented lumber company with operations in Canada and the U.S.