Nov 14, 2005. /Lesprom Network/. Monitor Clipper Partners Inc. is acquiring greeting card maker Recycled Paper Greetings Inc., according to Moody's Investors Service, in a recapitalization that appears to value the business at more than $250 million. Credit Suisse First Boston is arranging $217 million of debt, consisting of a $130 million first-lien senior secured credit and $87 million second-lien senior secured term loan. CSFB began the offering November 7 with bank meetings. Recycled Paper executives declined to comment on the recapitalization. The deal ends an auction for the Chicago-based company, which produces offbeat cards on recycled paper. It is the nation's third greeting card maker behind titans American Greetings Corp. and Hallmark Cards Inc. According to Moody's, Recycled Paper has a 2% market share but has taken market share from competitors. It has seen annual growth rates of 10% to 12% in recent years, a source said, even though Internet-based greetings have eroded sales of traditional printed cards. After the new debt package is in place, Recycled Paper will be highly leveraged, with debt about 6.2 times pro forma EBITDA. Recycled Paper posted about $90 million in sales for the year ended in October. It generates about $30 million of EBITDA, according to sources. Monitor, a middle-market-oriented firm, closed its $800 million Monitor Clipper Partners II fund in March 2004.