Orchids Paper Products amended its credit agreement with U.S. Bank and other lenders, increasing its borrowing capacity under the revolving line of credit by $5.9 million.
According to a related 8-K filing, the amendment also waived any existing non-compliance by the company with any covenant under the credit agreement, deferred future interest and principal payments until December 31, 2018, extended the deadline for the company to deliver either an executed purchase agreement for the sale of the company’s equity or assets or a binding commitment from institutional lenders to refinance the company’s debt obligations until December 14, 2018, requires the company to engage a nationally recognized investment banking group as its replacement investment banker to assist the company in the sale of its equity or assets and amended certain reporting and forecast requirements.
Jeff Schoen, Orchids president and CEO, stated, “Our lenders continue to support and maintain access to the liquidity needed to operate our business. Additionally, we recently won a significant bid from a national supercenter retailer as the sole supplier of 100% recycled ultra-premium kitchen towel and bath tissue supporting the sustainable product channel, which will be serviced out of our Barnwell facility using QRT paper. We expect this business to begin shipping in March 2019 and to make a significant contribution to the overall profitability of the company.”
Orchids Paper Products is a national supplier of high quality consumer tissue products primarily serving the at-home private label consumer market. It produces a full line of tissue products, including paper towels, bathroom tissue and paper napkins from its operations in northeast Oklahoma, Barnwell, South Carolina and Mexicali, Mexico.
