Boise Cascade entered into a new credit agreement with Wells Fargo Capital Finance, LLC, according to a July 13 filing with the Security and Exchange Commission. The agreement expands the company revolving credit facility to $250 million, an $80 million increase over the company's old agreement with Bank of America.

The new agreement has a maturity date of Oct. 15, 2014, but can be extended to July 13, 2016 if all borrowed notes have been repaid or the agreement is refinanced prior to the Oct. 15 date.

The amounts that Boise Cascade can borrow will be determined by borrowing base formula that is a percentage of accounts receivable and inventory that meet eligibility requirements specified in the agreement. The company cannot borrow more than the $250 million committed by the lenders.

The agreement also bears an interest set at a rate per annum equal to an applicable margin, plus, if the borrow agrees, London Inter-Bank Offered Rate or a base rate agreed two by the parties involved.

The credit agreement is secured by a first priority security interest in all of the assets of the Boise Cascade and its lenders except for property, plants, and equipment. So far, only one transfer of about $14 million of letters of credit is the only action on the account so far.