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Marcal Paper looks to pay expense deposit to secure $110 million in exit financing
By Caroline Salls
Pittsburgh, June 22 - Marcal Paper Mills, Inc. requested court approval to pay a $250,000 expense deposit to Merrill Lynch Commercial Finance Corp. to secure $110 million in exit financing, according to a Friday filing with the U.S. Bankruptcy Court for the District of New Jersey.
The exit facility is expected to consist of a $15 million five-year revolving credit facility, with up to $5 million available for letters of credit, a $65 million five-year term loan A and a $30 million six-year term loan B.
Interest on the revolver will be Libor plus 200 basis points, interest on the term loan A will be Libor plus 375 bps and interest on the term loan B will be Libor plus 650 bps.
Under the commitment letter, Marcal said the expense deposit must be paid by June 29.
Marcal Paper Mills, an Elmwood Park, N.J., manufacturer and distributor of bath tissue, kitchen towels, napkins and facial tissue, filed for bankruptcy on Nov. 30, 2006. Its Chapter 11 case number is 06-21886.
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