Forest product manufacturer Tembec said it entered into a new $150 million asset-based revolving credit facility, which replaces an existing $175 million revolver, and a $62 million “first-in, last out” term loan with Wells Fargo Capital Finance Canada, as administrative agent and PNC Financial as syndication agent.

The revolver will expire on November 18, 2020, provided several conditions are met, including the repayment of the FILO facility prior to March 2, 2018, failing which the maturity would be accelerated to an earlier date, but no earlier than March 2, 2018.

The revolver has a first priority charge over the receivables and inventories of the company’s Canadian and U.S. operations. The FILO facility is secured by the same collateral as the revolver and ranks second in repayment priority relative to the Revolver. The FILO facility is also secured by a first priority charge on the fixed assets of one of the company’s U.S. subsidiaries.

Tembec is a manufacturer of forest products — lumber, pulp, paper and specialty cellulose — and a global leader in sustainable forest management practices.