Appleton Papers has consent solicitation for 11¼% notes in the works

By Angela McDaniels

Tacoma, Wash., Jan. 25 - Appleton Papers Inc. plans to hold a consent solicitation for its 11¼% second-lien notes due 2015, according to an 8-K filing with the Securities and Exchange Commission.

The company wants to amend the indenture governing the notes in order to:

• Allow its employee stock ownership plan to reduce its ownership of Appleton's parent company, Paperweight Development Corp., to less than 50% without requiring Appleton to make a tender offer for the notes; and

• Allow a capital contribution or operating lease of the black liquor assets located at the company's Roaring Spring, Pa., facilities to a newly formed joint venture with a third party in exchange for a minority equity interest in that joint venture.

The company said it continues to explore strategic options related to the transactions contemplated by these amendments.

Appleton Papers is a paper manufacturing company based in Appleton, Wis.

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