Bear Stearns and UBS hit the market last week with a $375 million refinancing for Appleton Papers. The deal comprises a $125 million revolver and $250 million "B" loan. Both tranches are priced at LIBOR plus 2 1/2%. "They're recapitalizing the company--taking out old bonds, issuing new bonds and refinancing debt at the holding company as well," a banker said.
Appleton sells and distributes paper and paperboard products. All of the debt will now be at the operating company level. "It's a little bit slender," one buysider said about the price cut. "That company has done well," another buysider noted. "There's always concern that it is sort of a declining business, but they hit all their budgets."
Bear Stearns was previously the sole lead on the credit. U.S. Bank and LaSalle Bank served as documentation agent and Toronto Dominion was administrative agent. The credit included a $115 million "C" loan at LIBOR plus 3 1/4% (LMW, 6/9/02). Appleton officials were traveling and could not be reached for comment. Bear Stearns and UBS bankers declined comment.