Glatfelter’s Specialty Papers plans new debt financing for buyout

By Sara Rosenberg

New York, Aug. 29 – Glatfelter’s Specialty Papers Business Unit (Spartan Paper LLC) has received a commitment for debt financing to help fund its purchase by Lindsay Goldberg, according to an 8-K recently filed with the Securities and Exchange Commission.

Under the agreement, the business is being bought for $360 million, including $320 million of cash proceeds and the assumption of about $40 million of retiree healthcare liabilities.

Other funds for the transaction will come from equity.

In addition, the buyer will assume around $250 million of pension liabilities relating to the Specialty Papers Business Unit employees and receive about $300 million of related assets from Glatfelter’s existing pension plan.

Closing is expected in the fourth quarter, subject to customary conditions.

Glatfelter’s is a York, Pa.-based manufacturer and seller of specialty papers and fiber-based engineered products.

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