NewPage Seeks to Amend Its DIP Credit Agreement
NewPage Corporation announced that it is seeking to amend its amended and restated super-priority debtor-in-possession credit and guaranty agreement dated as of September 23, 2011.
Among other things, NewPage is seeking to reduce the Minimum Consolidated Adjusted EBITDA covenant and in conjunction would increase the Notes Payment Reserve. In addition, NewPage intends to obtain the flexibility for cash collateralized letters of credit to mature beyond the term of the DIP credit facility.
Obtaining these amendments requires consent of a certain portion of the Lenders and some of the amendments may require the approval of the United States Bankruptcy Court for the District of Delaware.
NewPage is the producer of printing and specialty papers in North America with $3.6 billion in net sales for the year ended December 31, 2010.
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