Buckeye Technologies to redeem all $140 million of 8½% notes due 2013

By Devika Patel

Knoxville, Tenn., Sept. 1 - Buckeye Technologies Inc. said it has called all $140 million of its 8½% senior notes due 2013 for redemption on Oct. 1.

The company will pay 101.417 for the notes, using drawings from its $200 million revolving credit facility and cash on hand.

Buckeye said it expects this redemption will result in a one-time charge of $3.6 million, or about 6 cents per share, in the fiscal first quarter for the early extinguishment of debt. It expects to realize monthly interest savings of about $800,000.

The company also said it is considering refinancing its revolving credit facility with a new and larger five-year revolver. This is expected to occur before year end.

Buckeye is a Memphis-based manufacturer of specialty fibers and nonwoven materials.

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