Clearwater Paper has completed a refinancing that replaces its senior notes due 2028 and existing revolving credit facilities with $475 million in new committed credit facilities, significantly extending the company’s debt maturity profile. The new financing consists of a $200 million revolving credit facility and a $275 million term loan.
Approximately $15 million of the revolving facility was outstanding at closing, while the $275 million term loan was fully funded.
Clearwater entered into the amended and restated credit agreement on September 18 with AgWest Farm Credit, PCA serving as administrative agent alongside a syndicate of lenders.
The revolving facility also contains an uncommitted $100 million expansion option.
Access to that additional capacity is subject to lender participation, delivery of Clearwater Paper’s 2027 year-end financial statements and other customary conditions.
Proceeds from the new credit agreement were used to repay and terminate Clearwater’s existing asset-based lending credit facility.
The company will also use the proceeds to fund redemption of its entire $275 million of outstanding senior notes due 2028.
The new agreement matures September 18, 2031, providing Clearwater with a five-year financing structure and pushing out major debt maturities.
Management said the refinancing provides additional certainty as the company pursues its long-term operating and capital allocation priorities.
The transaction also consolidates Clearwater’s financing structure around a new term loan and revolving facility backed by Farm Credit System lenders.
KEY QUOTES:
“This refinancing extends our debt maturities and provides greater certainty as we execute our long-term strategy.”
“We appreciate the support of our Farm Credit System partners and believe the new capital structure gives Clearwater Paper a stable foundation for continued execution of our business and capital allocation priorities.”
Arsen Kitch, President and CEO of Clearwater Paper
