Clearwater Paper Announces Pricing of $300 Million of Senior Notes
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Clearwater Paper Corp., Spokane, Wash., USA, this week priced a $300 million aggregate principal amount of senior notes due 2025. The notes will have an interest rate of 5.375% per annum and are being issued at a price equal to 100% of their face value.
The company estimates that the net proceeds from the offering will be approximately $296 million after deducting discounts and estimated offering expenses. Clearwater Paper intends to use the net proceeds along with company funds and funds drawn from its revolving credit facility to redeem all of its outstanding 7.125% Senior Notes due 2018.
Clearwater Paper manufactures consumer tissue, away-from-home tissue, hard roll tissue, machine glazed tissue, bleached paperboard, and pulp at 13 manufacturing locations in the U.S. and Canada. The company is a supplier of private label tissue to major retailers and wholesale distributors. This includes grocery, drug, mass-merchants, and discount stores. The company also produces bleached paperboard used by printers and packaging converters.
