KapStone gets $1.68 billion amended and restated credit facility

By Sara Rosenberg

New York, July 18 - KapStone Paper and Packaging Corp. closed on its $1,675,000,000 amended and restated senior secured credit facility that was used to help fund the acquisition of Longview Fibre Paper and Packaging Inc. from Brookfield Capital Partners II, according to an 8-K filed with the Securities and Exchange Commission on Thursday.

Bank of America, Barclays and Wells Fargo Bank led the financing.

The facility consists of an $805 million five-year term loan A-1 priced at Libor plus 225 basis points, a $470 million seven-year term loan A-2 priced at Libor plus 250 bps and a $400 million revolver priced at Libor plus 225 bps with a 50 bps unused fee.

KapStone is a Northbrook, Ill.-based producer of unbleached kraft paper and corrugated products. Longview Fibre Paper is a Longview, Wash.-based manufacturer of containerboard, lightweight high performance multiwall paper, specialty Kraft papers, and corrugated containers.

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