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WestRock enters into $3.8 billion credit agreement with Wells Fargo
By Sarah Lizee
Olympia, Wash., March 9 – WestRock Co. and subsidiary Whiskey Holdco, Inc. entered into a credit agreement that provides for an up to $300 million 364-day senior unsecured term loan, an up to $1.75 billion three-year senior unsecured term loan and an up to $1.75 billion five-year senior unsecured term loan.
The companies entered into the agreement on Wednesday with Wells Fargo Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.
Loans can be drawn in a single borrowing on a delayed-draw basis on or prior to the earlier of the end date of its planned merger with KapStone Paper and Packaging Corp., which is expected to be Oct. 29, and April 29, 2019.
Borrowings bear interest at Libor plus 112.5 basis points to 200 bps based on Whiskey Holdco’s corporate credit ratings or the leverage ratio, whichever yields a lower fee.
There is an unused fee between 12.5 bps and 30 bps based on WestRock’s corporate credit ratings or the leverage ratio, also whichever yields a lower fee.
Proceeds will be used for the merger, to repay some existing debt of KapStone, to pay fees and expenses incurred in connection with the transactions and, to the extent of any proceeds remaining, to provide for working capital and general corporate purposes.
Also on Wednesday, WestRock amended its credit agreements dated July 1, 2015 and Oct. 31, 2017 with Wells Fargo and its credit agreement dated July 1, 2015 with CoBank, ACB to permit the merger. All other terms and conditions of the existing credit agreements remain.
WestRock is a packaging company based in Norcross, Ga.
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