Nov. 5, 2009 (PR Newswire) -- ALPHARETTA, Ga., Nov. 5 /PRNewswire-FirstCall/ -- Neenah Paper, Inc. (NYSE: NP) today announced the Company had successfully renewed its North American senior secured credit facility. The existing facility was set to expire in November 2010. As of June 30, the Company had $84 million drawn against this facility and remaining available capacity of $52 million. The amended and restated facility, with an initial size of $140 million, expires in November 2013. The lending group consists of JPMorgan Chase Bank (agent bank and lead arranger), Bank of America (syndication agent), UBS and Goldman Sachs.
Bonnie Lind, Chief Financial Officer and Treasurer, said, "We are pleased with the terms of the facility, which recognize the improved profile of Neenah Paper as a result of divesting pulp and growing our premium and specialty paper businesses. The agreement provides borrowing capacity sufficient to meet our current needs and offers flexibility and access to low cost capital in the future. In addition, it allows us to continue relationships with the high caliber institutions that comprise our bank group."
The renewed financing facility consists of a revolving line of credit and a term loan. Significant provisions of the facility include:
-- The maturity date is extended three years, through November 2013.
-- The revolver is supported by a borrowing base consisting primarily of
inventory and receivables of the Company's North American operations.
Interest rates on the revolver are initially set at LIBOR plus 375 basis
points.
-- The term loan is supported by other Company assets and amortizes over
eight years. Interest rates on the term loan are LIBOR plus 425 basis
points.
-- An accordion feature allows the size of the revolver to increase by up
to $50 million.
-- Covenants remain substantially unchanged and trigger points were eased
to reflect the Company's improved stability and cash flows.
Additional details on the renewed credit facility can be found in an 8-K document filed with the Securities and Exchange Commission.
About Neenah Paper, Inc.
Neenah Paper is a leading global manufacturer of premium, performance- based papers and specialty products used in a variety of applications including filtration, printing and writing, and as backing and component materials for many specialized industrial and consumer applications. Products are marketed under well-known brands such as CLASSIC®, ENVIRONMENT®, CRANE®, KIMDURA®, Gessner®, JET-PRO® SofStretch(TM) and varitess®. Based in Alpharetta, Georgia, the company has paper manufacturing operations in the United States and Germany and approximately 500,000 acres of timberlands in Nova Scotia, Canada.
