Caraustar Industries plans $395 million add-on loan for Newark purchase

By Sara Rosenberg

New York, Nov. 25 – Caraustar Industries Inc. anticipates getting a fungible $395 million add-on term loan to help fund its acquisition of the Newark Group Inc., according to a market source.

Timing on the launch of the loan is not yet available, the source said.

Credit Suisse Securities (USA) LLC and Jefferies Finance LLC are the leads on the deal.

The acquisition is subject to customary closing conditions and required regulatory approvals.

Caraustar, a portfolio company of H.I.G. Capital, is an Austell, Ga.-based manufacturer of recycled paperboard and converted paperboard products. Newark is a Cranford, N.J.-based manufacturer of recycled paperboard, linerboard, industrial tubes, cores and other converted product including book covers and packaging services.

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