Canfor Pulp Announces Amendment to Existing Credit Facility

VANCOUVER, BC, Dec. 2, 2025 /CNW/ - Canfor Pulp Products Inc. (TSX: CFX) announced today 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.

As at September 30, 2025, the Company was fully in compliance with all covenants, had $54 million of availability liquidity on a proforma basis, and had a net debt to total capitalization ratio of 45.3% as defined under the terms of its operating loan facility. As at December 1, 2025 the Company had approximately $38 million of available liquidity on a proforma basis, with weak global pulp markets continuing to weigh on the Company's financial position.

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%.

Forward-looking statements.

Certain statements in this press release constitute "forward-looking statements" which involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any future results, performance or achievements expressed or implied by such statements. Words such as "expects", "anticipates", "projects", "intends", "plans", "will", "believes", "seeks", "estimates", "should", "may", "could", and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are based on management's current expectations and beliefs and actual events or results may differ materially. There are many factors that could cause such actual events or results expressed or implied by such forward-looking statements to differ materially from any future results expressed or implied by such statements. Forward-looking statements are based on current expectations and Canfor assumes no obligation to update such information to reflect later events or developments, except as required by law.

About Canfor Pulp Products Inc.

Canfor Pulp Products Inc. ("Canfor Pulp", "CPPI" or the "Company") is a leading global supplier of pulp and paper products with operations in the northern interior of British Columbia ("BC"). Canfor Pulp operates two mills in Prince George, BC with a total capacity of 780,000 tonnes of Premium Reinforcing Northern Bleached Softwood Kraft ("NBSK") pulp and 140,000 tonnes of kraft paper. CPPI shares are traded on the Toronto Stock Exchange under the symbol CFX. For more information visit canfor.com.

SOURCE Canfor Pulp Products Inc.