By Lisa Kerner
Charlotte, N.C., April 1 - Wausau Paper Corp. will issue $50 million of series A senior notes under a note purchase and private shelf agreement with Prudential Investment Management, Inc. and affiliates, according to a form 8-K filed with the Securities and Exchange Commission.
The notes are due April 9, 2017 and have an annual interest rate of 5.69%.
The company can prepay the notes at par at any time.
Wausau said it will use proceeds to pay down revolving debt and prepare the company to meet debt obligations maturing in 2011.
The agreement also establishes a three-year private shelf facility under which up to $125 million of additional promissory notes may be issued.
"Building on the balance sheet improvements achieved over the last year, the agreement enhances our capital structure and positions us to pursue future growth opportunities," Wausau executive vice president of finance Scott P. Doescher said in a news release.
Wausau is a Mosinee, Wis.-based paper company.
| Issuer: | Wausau Paper Corp.
|
| Issue: | Series A senior notes
|
| Amount: | $50 million
|
| Maturity: | April 9, 2017
|
| Coupon: | 5.69%
|
| Call option: | At par
|
| Pricing date: | March 31
|
| Distribution: | Private shelf
|
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