Paperweight’s Appvion fixes margin, increases maximum leverage ratios

By Wendy Van Sickle

Columbus, Ohio, Jan. 20 – Paperweight Development Corp.’s wholly owned subsidiary, Appvion, Inc., entered into a fifth amendment that fixes the applicable interest rate and makes other changes to its credit agreement dated June 28, 2013 with Jeffries Finance LLC as administrative agent and Fifth Third Bank as revolver agent, swingline lender and letter-of-credit issuer, according to an 8-K filing with the Securities and Exchange Commission.

Specifically, the Jan. 16 amendment fixes the rate for term and revolving loans at Libor 650 basis points, regardless of the company’s consolidated leverage ratio.

Also, the maximum consolidated first lien leverage ratios are increased to 3.6 times during the second fiscal quarter of 2017, stepping down to 3.5 times in the third quarter of 2017, to 3.25 times in the second quarter of 2018 and to 3 times from and after July 1, 2018.

The amendment also requires payment of a 1.5% premium on any prepayments, payments in connection with a change in control or a refinancing or payments at maturity of either term or revolving loans.

Appvion is based in Appleton, Wis., and makes thermal, carbonless and security papers.

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