Clearwater Paper has completed a refinancing that covers its term revolver, its existing asset-based lending (ABL) revolving facility and senior notes maturing in 2028.
According to the company, the previous debt arrangements have been replaced by a new term loan and a new revolving credit line, pushing out the group’s maturity schedule.
During this month, the company signed an amended and restated credit agreement with AgWest Farm Credit, which is acting as administrative agent, together with a lender syndicate.
Under the new package, Clearwater Paper secured a $200m revolving credit facility, with $15m drawn at the closing date.
It also put in place a $275m term loan that was fully funded when the transaction closed.
The revolving facility contains an uncommitted option to increase capacity by a further $100m.
Access to that amount depends on lender participation, submission of the company’s 2027 year-end financial statements, and other standard conditions.
Funds raised through the new credit agreement were used to repay and end the existing ABL facility and to cover the redemption price for the company’s outstanding $275m senior notes due in 2028, which are to be redeemed in full.
The new agreement runs for five years and is set to mature in September 2031, extending Clearwater Paper’s long-term debt maturity timetable.
Clearwater Paper president and CEO Arsen Kitch said: “This refinancing extends our debt maturities and provides greater certainty as we execute our long-term strategy.
“We appreciate the support of our Farm Credit System partners and believe the new capital structure gives Clearwater Paper a stable foundation for continued execution of our business and capital allocation priorities.”
In July, Clearwater Paper launched Circa paperboard in the US, introducing a coated recycled board range for folding carton and carrier applications through a collaboration with Greenpaper.
Clearwater Paper supplies paperboard packaging products to converters in North America. Based in Spokane, Washington, the company manufactures paperboard used in packaging for consumer goods and food service.
“Clearwater Paper refinances credit facilities with new loan package” was originally created and published by Packaging Gateway, a GlobalData owned brand.
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