PaperWorks announces finalization of deleveraging and recapitalization transaction

Posted March 19, 2018
PaperWorks Industries, Inc. and certain of its affiliates completed a comprehensive financial restructuring of the Company’s debt and equity. 

Among other things, the proposed restructuring reduced the Company’s funded indebtedness by approximately $280 million, or 70%, through a repayment of the Company’s existing ABL credit facility and an exchange of the Company’s 9.5% Senior Secured Notes due in August 2019 for new debt and new common equity in the reorganized Company. The Company’s new capital structure consists of a $114 million term-loan due in February 2023, inclusive of $70 million of new capital.

“The completion of this transaction provides a strong and financially flexible capital structure that provides sufficient liquidity to operate and grow our business and enables us to maximize value for our stakeholders,” said C. Anderson “Andy” Bolton, President and CEO of the Company.

PaperWorks Industries is a leading, integrated North American full-service provider of recycled paperboard and specialized folding cartons for packaging applications.




Topics: Credits

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