04:39 PM EDT, 06/12/2024 (MT Newswires) -- Conifex Timber ( CFXTF ) said Wednesday it arranged a $25-million secured term loan from PenderFund Capital Management. .

The company said the loan has a five-year term and carries a 14% interest rate and is secured by the company's lumber assets.

"We are delighted with the show of support PenderFund provided. They studied our business structure and objectives and provided us a tailored financing solution that provides our management team significant flexibility to strengthen our operations in Mackenzie and paves the way for improved operating results," chief executive Ken Shields said in a release.

The company said that with the loan in place, it is evaluating opportunities to establish a working capital credit facility "to sustain operations through a period of below normal lumber prices".

A portion of the loan was used to repay and retire Conifex's existing $11 million lumber segment credit facility with the balance earmarked for working capital and general corporate purposes.

Conifex shares closed up $0.015 to $0.48 on the Toronto Stock Exchange.