Smurfit-Stone amends loan, increasing consolidated senior secured leverage ratio

By Sara Rosenberg

New York, Oct. 6 - Smurfit-Stone Container Corp. amended its credit facility, increasing the consolidated senior secured leverage ratio for the period ending Sept. 30 to 3.25x from 3.00x, according to an 8-K filed with the Securities and Exchange Commission Thursday.

The company had previously stated in late-September that it was meeting with lenders about amending this covenant because it experienced a decline in volume and price in the first half of the year, particularly for its containerboard and corrugated containers products, and it's facing inflationary cost pressures for chemicals, energy, fiber and freight.

Deutsche Bank is the administrative agent on the deal.

The amendment was completed on Wednesday but is dated as of Sept. 30.

Smurfit-Stone is a Chicago-based manufacturer of paperboard and paper-based packaging.

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