Credit Suisse First Boston launched syndication of $130 million financing for White Birch Paper Co. to partially back the acquisition of the Quebec company, Papier Masson Ltée. The financing consists of a seven-year, $89 million term loan "B" priced at LIBOR plus 3 1/4% and a eight-year, $41 million second-lien term loan priced at LIBOR plus 7 1/2%. A spokesman for the company could not be reached.
Papier Masson is a low cost producer of newsprint with an annual production capacity of about 234,000 tons on one paper machine. White Birch is one of the largest newsprint producers in North America with an annual capacity of about 1,000,000 tons of newsprint and directory paper, according to the company. BMO Nesbitt Burns acted as the financial advisor to Papier Masson and TD Securities and CSFB acted as financial advisors to White Birch.