White Birch Paper flexes $185 million term loan to Libor plus 800 bps

By Sara Rosenberg

New York, Nov. 4 – White Birch Paper increased pricing on its $185 million first-lien term loan (B2/B+) to Libor plus 800 basis points from revised talk of Libor plus 750 bps and initial talk of Libor plus 600 bps, according to a market source.

Also, the original issue discount on the loan widened to 95 from revised talk of 98 and initial talk of 99, the maturity was shortened to five years from six years and a maximum capital expenditures covenant was added to the originally covenant-light deal, the source said.

In addition, the loan is now non-callable for one year, then at 102 in year two and 101 in year three, compared to previously revised call protection talk of 103 in year one, 102 in year two and 101 in year three and initial plans for call protection of 102 in year one and 101 in year two.

Furthermore, the excess cash flow sweep was modified to 100% semiannual from 100% annual, the source continued.

The term loan still has a 1% Libor floor.

Commitments are due at 5 p.m. ET on Nov. 17, the source added.

Credit Suisse Securities (USA) LLC is the lead bank on the deal.

Proceeds will be used to refinance existing debt.

White Birch Paper is a Greenwich, Conn.-based manufacturer of newsprint, directory paper and paperboard.

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