Neenah Paper to Call $58 million of 2014 Notes on November 15
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Neenah Paper Inc., Alpharetta, Ga., USA, has elected to conduct an early redemption of $58 million of its 7.375% Senior Notes due in 2014. The Notes will be purchased at par value on November 15, and will be financed by a combination of borrowings using the company's existing revolving credit facility and a new $30 million term loan. Both the revolver and term loan mature on November 30, 2017. As of June 30, 2012, there were $148 million of Notes outstanding.
Bonnie Lind, SVP, CFO, and treasurer, noted that "Neenah's balance sheet is strong and our debt is well within targeted levels. By substituting low cost floating rate debt for existing fixed rate debt, we will reduce financing costs while still maintaining a sound capital structure with ample flexibility to support growth initiatives."
The Partial Redemption will result in savings of more than $500,000 per quarter in interest expense, the company said.
Neenah Paper is a producer of premium image and performance-based products, including filtration, specialized substrates used for tapes, labels, and other products, and high-end printing papers.
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