Kruger enters commitment letter to lift facility to C$300 million

By Wendy Van Sickle

Columbus, Ohio, Aug. 31 – Kruger Products LP has entered into a commitment letter with National Bank of Canada to expand its existing credit facility to C$300 million, according to a Monday press release.

The expansion would be a C$175 million increase from the facility’s current C$125 million capacity. The transaction is expected to close Sept. 30.

Proceeds will be used to redeem the company’s C$175 million of outstanding 8% senior notes due Aug. 9, 2018.

Kruger a tissue products producer with brands that include Cashmere, Purex and Scotties. The company is a subsidiary of Montreal-based pulp and paper producer Kruger Inc.

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