Mar 04, 2011. /Lesprom Network/. Tembec had entered into a new $200 million asset-based secured revolving credit facility with GE Capital and CIBC. The new five-year facility expires in February 2016 and will effectively replace an existing $205 million revolving credit facility that would have expired in December 2011, as the company said in a press release received by Lesprom Network. The new facility has a first priority charge over the receivables and inventories of the Company’s Canadian operations. The terms of the new facility will provide for an increase in availability of approximately $60 million due primarily to a reduction in borrowing base reserves. After giving effect to the increased availability, the Company’s total liquidity (cash and available revolving lines of credit) will be approximately $190 million. The Company had previously indicated that the refinancing of the revolving credit facility was a priority. “We are pleased that we were able to build on our long-standing ABL relationship with two of our existing lenders,” said Michel Dumas, Executive Vice President, Finance and CFO. “The refinancing of our ABL to 2016, as well as the prior issuance of senior secured notes maturing in 2018, represented key elements of the Company’s business plan. Tembec is well positioned to benefit from improving economic conditions, with relatively low debt and enhanced liquidity,” added James Lopez, President and CEO. Tembec is a large, diversified and integrated forest products company which stands as the global leader in sustainable forest management practices.