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Clearwater Paper restates credit agreement for $270 million revolver, $490 million term loans
By Wendy Van Sickle
Columbus, Ohio, May 1 – Clearwater Paper Corp. on May 1 entered into an amendment and restatement of its credit agreement originally dated Oct. 27, 2023 with AgWest Farm Credit, PCA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.
The credit agreement provides for a $270 million term revolver – $150 million of which was disbursed on Oct. 27, 2023 and $120 million of which was drawn after closing of the acquisition of assets of Graphic Packaging International, LLC’s consumer packaging business – and term loan commitments of $400 million and $90 million, each of which was fully drawn after closing the acquisition.
The commitment under the term revolver is subject to an annual reduction of 2% of the commitments then in effect.
The term revolver and the $90 million term loan mature on May 1, 2029. The $400 million term loan matures on May 1, 2031.
Loans under the term revolver and $90 million term loan generally bear interest at SOFR plus a margin ranging from 225 basis points to 475 bps prior to full repayment of the term loans. After full repayment of the term loans, the term revolver margin will be 365 bps.
For the $150 million revolver disbursed in October, the company previously selected a one-year fixed-rate loan bearing interest at an all-in interest rate of 9.13%.
The $400 million term loan bears interest at SOFR plus a margin ranging from 175 bps to 425 bps.
The company also entered into an amendment to its ABL credit agreement dated July 26, 2019 with JPMorgan Chase Bank, NA as administrative agent, increasing the maximum commitment by $100 million to $375 million, $120 million of which was outstanding after giving effect to the closing of the acquisition, and $3.7 million of which was used for outstanding but undrawn letters of credit.
Clearwater Paper is a Spokane, Wash.-based pulp and paper product manufacturer.
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