Neenah Paper, Inc. (ticker: NP, exchange: NYSE Archipelago Exchange (.N))
News Release -
Neenah Paper Renews Credit Facility Through 2013
ALPHARETTA, Ga., Nov. 5 /PRNewswire-FirstCall/ -- Neenah Paper, Inc. (NYSE: NP) today announced the Company had successfully renewed its North American senior secured credit facility. The existing facility was set to expire in November 2010. As of June 30, the Company had $84 million drawn against this facility and remaining available capacity of $52 million. The amended and restated facility, with an initial size of $140 million, expires in November 2013. The lending group consists of JPMorgan Chase Bank (agent bank and lead arranger), Bank of America (syndication agent), UBS and Goldman Sachs.
Bonnie Lind, Chief Financial Officer and Treasurer, said, "We are pleased with the terms of the facility, which recognize the improved profile of Neenah Paper as a result of divesting pulp and growing our premium and specialty paper businesses. The agreement provides borrowing capacity sufficient to meet our current needs and offers flexibility and access to low cost capital in the future. In addition, it allows us to continue relationships with the high caliber institutions that comprise our bank group."
The renewed financing facility consists of a revolving line of credit and a term loan. Significant provisions of the facility include:
-- The maturity date is extended three years, through November 2013.
-- The revolver is supported by a borrowing base consisting primarily of
inventory and receivables of the Company's North American operations.
Interest rates on the revolver are initially set at LIBOR plus 375 basis
-- The term loan is supported by other Company assets and amortizes over
eight years. Interest rates on the term loan are LIBOR plus 425 basis
-- An accordion feature allows the size of the revolver to increase by up
to $50 million.
-- Covenants remain substantially unchanged and trigger points were eased
to reflect the Company's improved stability and cash flows.
Additional details on the renewed credit facility can be found in an 8-K document filed with the Securities and Exchange Commission.
About Neenah Paper, Inc.
Neenah Paper is a leading global manufacturer of premium, performance- based papers and specialty products used in a variety of applications including filtration, printing and writing, and as backing and component materials for many specialized industrial and consumer applications. Products are marketed under well-known brands such as CLASSIC®, ENVIRONMENT®, CRANE®, KIMDURA®, Gessner®, JET-PRO® SofStretch(TM) and varitess®. Based in Alpharetta, Georgia, the company has paper manufacturing operations in the United States and Germany and approximately 500,000 acres of timberlands in Nova Scotia, Canada. Additional information about Neenah Paper can be found at the company's web site, www.neenah.com.
Cautionary Note Regarding Forward-Looking Statements
Certain statements in this press release may constitute "forward-looking" statements as defined in Section 27A of the Securities Act of 1933 (the "Securities Act"), Section 21E of the Securities Exchange Act of 1934 (the "Exchange Act"), the Private Securities Litigation Reform Act of 1995 (the "PSLRA"), or in releases made by the Securities and Exchange Commission, all as may be amended from time to time. Statements contained in this press release that are not historical facts may be forward-looking statements within the meaning of the PSLRA. Any such forward-looking statements reflect our beliefs and assumptions and are based on information currently available to us and are subject to risks and uncertainties that could cause actual results to differ materially including, but not limited to: (i) worldwide economic conditions, which have deteriorated significantly in the U.S., Germany and many other countries and regions, (ii) significant capital and credit market volatility and deterioration, (iii) U.S. dollar/Euro and other exchange rates, (iv) changes in prices for pulp, energy, latex and other raw materials, (v) the cost or availability of raw materials, (vi) unanticipated expenditures related to the cost of compliance with environmental and other governmental regulations and (vii) the ability of the company to realize anticipated cost savings. These and other factors that could cause or contribute to actual results differing materially from any forward-looking statements are discussed in more detail in our other filings with the Securities and Exchange Commission. Forward-looking statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. These cautionary statements are being made pursuant to the Securities Act, the Exchange Act and the PSLRA with the intention of obtaining the benefits of the "safe harbor" provisions of such laws. Neenah Paper, Inc. cautions investors that any forward-looking statements we make are not guarantees or indicative of future performance.
SOURCE Neenah Paper, Inc.
Bill McCarthy, Vice President - Financial Analysis and Investor Relations of Neenah Paper, Inc., +1-678-518-3278