KapStone restates facility for $1.92 billion term loans, revolver

By Marisa Wong

Madison, Wis., June 1 – KapStone Paper and Packaging Corp. announced a $1,915,000,000 amended and restated senior secured credit facility led by Bank of America, Barclays Bank and Well Fargo Bank.

The amended facility consists of a $940 million five-year term loan A-1, a $475 million seven-year term loan A-2 with 1% amortization in each of the first six years and a $500 million revolving credit facility, according to a press release.

The initial blended interest rate will be 1.9%. Pricing for the Libor loans is generally based on KapStone’s debt to EBITDA ratio.

The company used borrowings from the amended facility to fund its acquisition of Victory Packaging/Golden State Container.

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

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