Wausau Paper amends credit agreement terms, lifts pricing

By Susanna Moon

Chicago, April 2 - Wausau Paper Corp. amended its credit agreement on March 28 with Bank of America, NA, BMO Harris Bank NA, Northwest Farm Credit Services, PCA and 1st Farm Credit Services, according to an 8-K filing with the Securities and Exchange Commission.

The amendment reduced the company's required minimum net worth by $8 million, which reflected a non-cash charge recorded by the company during the fourth quarter of 2013 for an income tax valuation allowance.

The company also revised the definition of the company's "consolidated EBITDDA" to exclude costs and expenses associated with the company's 2014 annual meeting preparations to the extent that those costs and expenses do not exceed $2 million during any quarterly period.

The amendment also required the company to, within 60 days from the effective date of the credit agreement amendment, seek authorization from its board of directors to secure the debt held by the lenders with liens on substantially all the assets of the company and its subsidiaries.

Interest to be paid to the lenders also was increased.

BMO Harris was formerly known as M&I Marshall & Ilsley Bank.

Wausau Paper is a Mosinee, Wis.-based company that manufactures, converts, and sells paper and paper products.

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