Orchids Paper Products gets $75 million credit agreement via U.S. Bank

By Jennifer Chiou

New York, June 5 – Orchids Paper Products Co. announced that it has entered into a $75 million credit agreement with U.S. Bank NA, consisting of a $45 million revolving credit line due June 2019 and a $30 million term loan due June 2020.

The company said it will fund its strategic alliance with Fabrica de Papel San Francisco, SA de CV using the term loan.

Orchids paid an aggregate of $36.7 million under the agreements, consisting of $20 million of Orchids common stock and cash of $16.7 million.

According to a news release, the credit agreement has the effect of extending and increasing Orchids’ revolving working capital line of credit to $25 million from $15 million.

Borrowings will bear interest at Libor plus 100 bps to 200 bps.

Pryor, Okla.-based Orchids is an integrated manufacturer of tissue paper products.

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