Orchids Paper amends agreement for added liquidity, payment deferral

By Sarah Lizee

Olympia, Wash., Aug. 7 – Orchids Paper Products Co. amended its second amended and restated credit agreement dated as of June 25, 2015 with U.S. Bank NA to provide additional liquidity and defer interest and principal payments, according to a press release.

The company is now able to borrow up to the full commitment under the revolving line of credit, which includes a revolver commitment of $33.1 million and a debt reserve of $12.9 million.

Future interest and principal payments were deferred until Oct. 31.

Some reporting and forecast requirements were also amended, the company said.

The amendment also extends milestone dates in place by which the Orchids Paper is required to accomplish actions related to its pursuit of strategic financing alternatives such as a sale or refinancing, including negotiating and executing by Aug. 31 a purchase agreement for the sale of the company’s equity or assets or a binding commitment from institutional lenders to refinance the company’s debt obligations, in either case in an amount sufficient to repay the company’s debt obligations to its existing lenders in full.

Orchids makes consumer tissue products and is based in Pryor, Okla.

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