NewPage looks to amend term loan and revolver, cancel portion

By Angela McDaniels

Tacoma, Wash., July 15 - NewPage Corp. is seeking to amend some provisions of its senior secured term loan facility and revolving credit facility and to purchase and cancel $425 million of the outstanding balance under the term loan facility, according to a company news release.

The proposed amendments are expected to include an increase in the rates and fees, the elimination of financial maintenance covenants through 2010 and the addition during that period of a minimum liquidity covenant.

They will also include the modification or elimination of some financial maintenance covenants after 2010, an extension of the maturity of at least a portion of the term loans and changes that will allow additional purchases or redemptions of the company's notes.

Goldman, Sachs & Co. is acting as arranger for the amendments.

The amendments and cancellation are two of several transactions the company is undertaking to increase its operating flexibility and reduce its debt.

The company is also holding tender offers for $1.43 billion of its notes and plans to offer new senior secured notes due 2014, which will result in approximately $595 million of gross proceeds after the original issue discount.

NewPage is a coated paper manufacturer based in Miamisburg, Ohio.

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