Appleton amends loan, changing pricing, maturity and covenants

By Sara Rosenberg

New York, March 27 - Appleton Papers Inc. amended its credit facility, revising pricing, moving the revolver maturity date to June 5, 2012 and modifying covenants, according to a 10-K filed with the Securities and Exchange Commission on Friday.

Pricing on the facility is now set at Libor plus 450 basis points with a 2% Libor floor.

Financial covenants changes included increasing the total leverage ratio, eliminating the interest coverage ratio, adding a senior secured leverage ratio and adding a fixed-charge coverage ratio.

Also under the amendment, the company is permitted up to $35 million of capital expenditures in 2009 and up to $40 million of capital expenditures in 2010, but is unable to make acquisitions until Dec. 31, 2010.

And, mandatory prepayments were increased from 50% to 75% of excess cash flow.

In addition, the company amended its senior secured term note payable, changing pricing to 14.25%

And, the maturity date for the senior secured variable rate notes payable was revised to June 5, 2013.

Appleton is an Appleton, Wis.-based paper manufacturing company.

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