Appvion gets lenders OK on amendment permitting notes offering

By Sara Rosenberg

New York, Nov. 12 - Appvion Inc. has received approval from lenders to amend its credit facility to allow for the issuance second-lien senior secured notes, according to an 8-K filed with the Securities and Exchange Commission on Tuesday.

Proceeds from the notes will be used to redeem all of the company's outstanding 9¾% senior subordinated notes due 2014 and 11¼% second-lien notes due 2015, to pay the redemption premium for the 11¼% notes, to pay fees and expenses and, if there is any amount remaining, for general corporate purposes.

The amendment was completed on Nov. 11 and will become effective upon the closing of the company's newly announced $250 million second-lien senior secured notes offering.

Jefferies Finance LLC is the administrative agent on the deal.

Appvion, formerly Appleton Papers Inc., is an Appleton, Wis.-based producer of thermal, carbonless and security papers and Encapsys products.

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