Chesapeake to offer new securities in exchange for its 10 3/8%, 7% notes

By Susanna Moon

Chicago, Aug. 1 - Chesapeake Corp. said it plans to begin an exchange offer in September for its 10 3/8% sterling-denominated senior subordinated notes due 2011 and its 7% euro-denominated senior subordinated notes due 2014.

The offer is part of the company's proposed refinancing plan to address the upcoming maturity of its bank credit facility and its general liquidity needs, according to a press release.

Plans also include securing senior secured credit facilities to repay the company's $250 million senior secured credit facility.

As previously disclosed, the company said it expects that at the end of the third fiscal quarter, it may not be in compliance with the financial covenants set forth in its existing credit facility.

Chesapeake said it expects to address compliance issues with the financial covenants through the proposed refinancing plan or by reducing outstanding debt, amending the existing credit facility or obtaining waivers from its lenders.

The company said it cannot assure its proposed refinancing or other alternatives will be implemented.

Lucid Issuer Services (44 20 7704-0880; email at chesapeake@lucid-is.com) is the information agent.

Chesapeake is a Richmond, Va.-based manufacturer and supplier of specialty paperboard packaging products.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.