Feb 01, 2010. /Lesprom Network/. West Fraser Timber Co. Ltd. has concluded an amendment to its existing credit agreement which has a $600 million revolving term credit facility committed until March 31, 2012, the company said in a press release received by Lesprom Network. The amendment helps ensure that the committed credit facility will be available for strategic investment even in the context of uncertain market conditions. As well, the amendment provides increased flexibility in its capital structure and provides greater access to certain credit and capital markets. The amendment raises the threshold debt to capitalization ratio, at which a specified interest coverage ratio must be met, from 37.5% to 42.5%. The amendment also provides that West Fraser may incur or issue certain subordinated debt which is excluded from the calculation of this debt to capitalization ratio. In 2009 the company reduced its total debt by approximately $92 million and at the end of the year its debt to total capitalization ratio was approximately 24%. In connection with the amendment, West Fraser will provide security over substantially all of its property and assets in Canada and the United States. Pursuant to the terms of the indenture governing West Fraser's $300 million notes, West Fraser will, to the extent required, secure such notes equally with the credit agreement for so long as the credit agreement is secured. Under the amendment, security will be released and discharged when West Fraser achieves corporate credit ratings of not less than BBB- by Standard and Poor's and Baa3 by Moody's. The amendment will not restrict West Fraser from issuing additional secured notes or debentures provided such additional indebtedness complies with pre-existing limits in the credit agreement. West Fraser is an integrated wood products company producing lumber, LVL, MDF, plywood, pulp and newsprint.