Mail-Well closes on $300 million revolving credit facility

By Sara Rosenberg

New York, July 9 - Mail-Well Inc. said it refinanced its senior secured credit facility with a new $300 million three-year revolver. Bank of America was the administrative agent for the deal.

There is currently $135 million drawn under the new facility, which presently has an interest rate of about 6% and a borrowing base of $280 million, according to a filing with the Securities and Exchange Commission. Under the loan agreement, the company must maintain a ratio of EBIDTA to fixed charges of 1.05 to 1.00.

A portion of the revolver was used to satisfy obligations under the previous loan, including the repayment of its term loans, the company said in a press release.

Availability under the revolver is based on the Englewood, Colo. printing company's accounts receivable, inventory and equipment, giving the company flexibility to operate without the constraints of having to meet total debt to EBITDA leverage ratios, according to the SEC filing.

"We are pleased with our new credit arrangement," said Michel Salbaing, senior vice president and chief financial officer, in the news release. "It allows us more financial flexibility to manage the strategic planning process and weather the current industry downturn. It is the right tool to help us achieve our strategic goals."

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