Appvion cuts first-lien loan to $335 million, eliminates second-lien

By Sara Rosenberg

New York, June 24 - Appvion, Inc. downsized its six-year first-lien term loan to $335 million from $375 million and canceled plans for a $200 million seven-year second-lien term loan, according to a market source.

Also, pricing on the first-lien term loan was increased to Libor plus 450 basis points from talk of Libor plus 400 bps to 425 bps, and the original issue discount is now talked at 99 instead of at 99 to 991/2, the source said.

The first-lien term loan still has a 1.25% Libor floor and 101 soft call protection for one year.

The second-lien term loan that was pulled was talked at Libor plus 775 bps to 800 bps with a 1.25% Libor floor, a discount of 98½ and call protection of 103 in year one, 102 in year two and 101 in year three.

Jefferies Finance LLC and Fifth Third Securities Inc. are leading the deal.

Proceeds will be used to tender for the company's 10½% secured notes due 2015. Tender offers for its 9¾% subordinated notes due 2014 and 11¼% second-lien notes due 2015 were terminated with the change to the loan plans.

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

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