Under the terms of the sale, KapStone acquired USC, including a 240,000 ton recycled containerboard paper mill in Cowpens, SC, and 14 converting facilities in the eastern and mid-western United States. USC has been successful in creating strong, long-term customer relationships resulting from outstanding service, quality and innovation.
“Today we are welcoming USC’s team as the newest members of KapStone,” stated Roger W. Stone, Chairman and Chief Executive Officer. “We look forward to building on their momentum. The acquisition of USC now transforms KapStone into a much more profitable and stronger company.”
Funding for the acquisition came from cash on hand and borrowing under a new $525 million senior secured credit facility led by Bank of America Merrill Lynch and Barclays Capital. The new facility consists of a $375 million term loan maturing over five years and a $150 million revolving credit facility. At closing, KapStone’s previously existing $101 million term loan was repaid. KapStone now has a $375 million 5 year term loan at an initial interest rate of 2.25 percent.
The revolver was unused and is available for working capital requirements.
There is to be no profanity and there is to be no character assassination even if the person being written about is a suspect in a crime.
Comments that presume knowledge of a person’s home life, financial situation or other personal details will be not be posted as will comments which presume legal knowledge.
All comments must be on the topic of the story and offer the reader’s insight on a particular issue. rrspin.com will cease posting comments if the editor determines readers are infighting with one another and not staying on the topic of a story.
rrspin.com prefers readers use their real names because anonymous posters are accountable for their comments just as readers who post their names are.