Appvion to launch $575 million of new term loans on Tuesday

By Sara Rosenberg

New York, June 3 - Appvion is set to hold a bank meeting at 10 a.m. ET on Tuesday to launch $575 million of first- and second-lien term loans, according to a market source.

Jefferies Finance LLC is leading the deal.

The debt consists of a $375 million six-year first-lien term loan and a $200 million seven-year second-lien term loan, the source said.

Proceeds will be used to refinance the company's 9¾% subordinated notes due 2014, 10½% secured notes due 2015 and its 11¼% second-lien notes due 2015.

First-lien leverage is 3 times and total leverage is 4.6 times, based on about $131.5 million of EBITDA, the source added.

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

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