Orchids Paper Products increases facility and amends pricing, covenant

By Marisa Wong

Morgantown, W.Va., Jan. 23 – Orchids Paper Products Co. amended its second amended and restated credit agreement dated June 25, 2015 with U.S. Bank NA to increase the loan commitment, modify the pricing grid, amend a financial covenant and amend the terms of the draw loan to provide for additional advance amounts available for acquiring or improving real estate, according to an 8-K filing with the Securities and Exchange Commission.

Specifically, the total loan commitment was increased to $176.1 million from $167.2 million.

The interest rate margin for Libor loans now ranges between 125 basis points and 400 bps, depending on leverage.

In addition, the amendment increased the permitted total leverage ratio for fiscal quarters ending on or prior to March 31, 2018. The maximum 12-month rolling leverage ratios are allowed to increase to 5.75 to 1 prior to being decreased to 3.5 to 1, as originally scheduled.

The company paid $200,000 of fees for the amendment.

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

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