White Birch restructures $400 million two-part deal, issues price talk

By Paul A. Harris

St. Louis, March 23 - White Birch Paper Co. (Bear Island Paper Co.) has restructured its $400 million two-part bond offering (B2/B), according to an informed source.

The company is now in the market with about $250 million of eight-year senior secured notes, which are non-callable for four years. The notes are talked for a yield in the 9% area.

The offering had originally been structured as 10-year senior unsecured notes that were non-callable for five years.

The company also added security to its tranche of seven-year floating-rate notes, which are non-callable for two years. The notes are talked at three-month Libor plus 450 basis points. The tranche had also originally been marketed as an offering of senior unsecured notes.

Timing for the issuance remains to be determined.

Credit Suisse First Boston has the books for the Rule 144A/Regulation S offering, which has registration rights. TD Securities is the co-manager.

Proceeds along with cash and borrowings from the company's new revolving credit facility will be used to repay outstanding debt of Brant-Allen Industries and certain of its affiliates, including the company's outstanding 10% senior secured notes due 2007, also to purchase the equity interests of certain of Brant-Allen's equity partners, and for general corporate purposes.

The prospective issuer is a Toronto-based newsprint company.

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