Smurfit-Stone seeks amendment to senior secured leverage ratio

By Sara Rosenberg

New York, Sept. 23 - Smurfit-Stone Container Corp. approached lenders with an amendment proposal to its credit facility on Friday, under which the consolidated senior secured leverage ratio for the period ending Sept. 30 would be revised to avoid non-compliance, according to an 8-K filed with the Securities and Exchange Commission.

The company anticipates being unable to meet the current 3.00 times to 3.25 times leverage ratio test because it experienced a decline in volume and price in the first half of the year, particularly for its containerboard and corrugated containers products and its inflationary cost pressures for chemicals, energy, fiber and freight.

Smurfit-Stone is a Chicago-based manufacturer of paperboard and paper-based packaging.

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