Appleton Papers seeks $375 million credit facility

By Sara Rosenberg

New York, May 7 - Appleton Papers Inc. is currently in market with a $375 million senior secured credit facility, according to a market source.

Bank of America and UBS are the lead banks on the deal, with Bank of America the left lead.

The facility consists of a $150 million six-year revolver and a $225 million seven-year term loan, the source said.

Proceeds will be used to refinance existing debt and to help fund the expansion of the company's thermal paper production capacity mill in West Carrollton, Ohio.

Leverage through the bank debt will be roughly 1.5 times, senior leverage will be roughly 2.7 times and leverage through the company's subordinated notes will be roughly 3.7 times.

Commitments from lenders are due on May 14.

Appleton is an Appleton, Wis., manufacturer and distributor of a variety of specialty paper products.

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