White Birch Paper widens discount on $185 million term loan to 93

By Sara Rosenberg

New York, Nov. 17 – White Birch Paper changed the original issue discount on its $185 million five-year first-lien term loan (B2/B+) to 93 from revised talk of 95 and, prior to that, 98 and initial talk of 99, according to a market source.

Pricing on the term loan is Libor plus 800 basis points with a 1% Libor floor.

The loan is non-callable for one year, then at 102 in year two and 101 in year three.

Earlier in syndication, pricing was increased from revised talk of Libor plus 750 bps and initial talk of Libor plus 600 bps, the maturity was shortened from six years, and a maximum capital expenditures covenant was added to the originally covenant-light deal.

Also, previously, the call protection was modified from revised talk of 103 in year one, 102 in year two and 101 in year three and initial plans of 102 in year one and 101 in year two, and the excess cash flow sweep was changed to 100% semiannual from 100% annual.

Credit Suisse Securities (USA) LLC is the lead bank on the deal.

Proceeds will be used to refinance existing debt.

White Birch Paper is a Greenwich, Conn.-based manufacturer of newsprint, directory paper and paperboard.

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