KapStone Paper lowers interest rate for term loans, fees on revolver

By Marisa Wong

Madison, Wis., April 3 - KapStone Paper and Packaging Corp. amended its July 18, 2013 credit facility agreement on Wednesday to reduce borrowing rates for outstanding term loans and for any future borrowings under its $400 million revolving credit facility, according to a press release.

Interest is equal to Libor plus a margin based on the company's debt to EBITDA ratio. The average weighted interest rate is now 2%, down from 2.25%.

The amendment also reduces the unused commitment fees related to the revolving credit facility by 5 to 10 basis points.

As of Dec. 31, KapStone's credit facility had two outstanding term loans totaling $1,224,000,000.

Roger W. Stone, chairman and chief executive officer, said in the release, "We are appreciative of this positive recognition from our banks rewarding KapStone for our operating performance since the acquisition of Longview."

Based in Northbrook, Ill., KapStone is a producer of containerboard, corrugated packaging products and kraft paper.

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