Riverwood to add $250 million term loan to credit facility, proceeds to redeem 10¼% notes

New York, April 4 - Riverwood International Corp. said it obtained commitments for a new $250 million senior secured term loan.

The Atlanta, Ga. paperboard and packaging company will use proceeds from the new loan and borrowings under its revolving credit facility to redeem its $250 million 10¼% senior notes due 2006 and to pay the call premium, fees and expenses associated with the transaction which it estimates at $12 million.

Riverwood's commitments for the new term loan are from Deutsche Bank and JPMorgan Chase Bank.

The new term loan will be an additional tranche on Riverwood's existing credit facility.

Funding is expected by mid-April 2002.

The new term loan is expected to mature on March 31, 2007. Amortization will be in semi-annual installments of $1.25 million, with $1.25 million due in 2002 and $2.5 million in each of 2003, 2004, 2005 and 2006.

As with the existing credit facility, the new loan is expected to be guaranteed by Riverwood's subsidiaries and parents, and to be secured by assets of the Riverwood group.

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