Orchids Paper adds delayed-draw loan, expects to refinance facility

By Marisa Wong

Madison, Wis., May 4 – Orchids Paper Products Co. entered into an amended and restated credit agreement on April 28 with U.S. Bank NA, according to an 8-K filing with the Securities and Exchange Commission.

The company increased the borrowing capacity under the credit facility to $115 million from $75 million with the addition of a $40 million delayed-draw facility.

The draw facility expires on Aug. 31.

Advances under the draw facility must be used solely to finance the purchase and installation of new equipment and construction at the company’s Barnwell, S.C., facility. The amendment represents interim financing for the company to begin construction of its Barnwell facility.

Management expects this interim draw facility to be refinanced as part of a larger credit facility prior to its expiration, the filing said.

The credit agreement amends the company’s credit agreement dated June 3, 2014.

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

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