Orchids Paper reduces credit facility’s capacity to $171.9 million

By Angela McDaniels

Tacoma, Wash., Jan. 5 – Orchids Paper Products Co. amended its credit agreement on Dec. 29 to reduce the credit facility’s borrowing capacity to $171.9 million from $187.3 million, a $15.4 million reduction.

According to an 8-K filing with the Securities and Exchange Commission, the amendment was entered into to facilitate a series of financing transactions involving the company’s wholly owned subsidiaries and some community development financial institutions under the New Market Tax Credits program of the Internal Revenue Code.

Orchids Lessor SC, LLC has received $16.2 million of loan proceeds through the transactions. The proceeds must be used to help fund the company’s expansion project in Barnwell, S.C.

The loans will bear interest at a weighted average fixed rate of 3.47% per year for a minimum of seven years.

U.S. Bank NA is the administrative agent.

Pryor, Okla.-based Orchids Paper Products makes tissue paper products.

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