Orchids Paper amends credit agreement, still pursuing sale, refinancing

By Wendy Van Sickle

Columbus, Ohio, Jan. 29 – Orchids Paper Products Co. said it has reached an agreement to amend its credit agreement dated June 25, 2015 with its new lender, Black Diamond Commercial Finance, LLC, as successor to U.S. Bank NA, and Orchids Investment LLC as successor to the lenders party to the credit agreement.

“We are working with our new lenders to continue the process of securing an agreement for the sale of the company or the refinancing of our current debt obligations,” Jeff Schoen, president and chief executive officer of Orchids Paper, said in a press release on Tuesday.

The amended credit agreement extends the deadline for the company to execute a purchase agreement for the sale of the company or a binding commitment for the refinancing of its debt obligations to March 1.

The deadline to complete such a transaction and repay the company's debt obligations has been extended to May 1.

“We continue to focus on our business as we work through this process,” Schoen said.

The release added that while Orchids Paper is continuing to pursue a transaction to address its liquidity needs, there can be no assurance that it will be able to consummate any sale, transaction or refinancing.

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

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