Greenpac Mill, a joint venture of Cascades, a manufacturer of green packaging and tissue paper products, refinanced its bank debt. Niagara Falls, NY-based Greenpac Mill is a partnership with the Caisse de dépôt et de placement du Québec, Jamestown Container and Containerboard Partners.
The refinancing was completed with Wells Fargo, M&T Bank and Bank of America acting as co-lead arrangers and Export Development Canada as a member of the banking syndicate.
The $245 million debt package includes a $195 million term loan and an authorized revolving credit facility of $50 million. The five-year agreement will allow the mill to reduce its financing costs by approximately 225 basis points.
“Today’s announcement is excellent news, as it will give us increased flexibility to successfully address future market fluctuations, and will improve Greenpac’s financial situation, considering that 65% of the term loan principal is payable at the end of the term only. We would like to thank our financial partners for their ongoing support,” commented Cascades’ CFO Allan Hogg.