Clearwater Paper replaced its existing facilities with a $200 million revolving Loan Facility and a fully drawn $275 million term loan facility on September 18, 2026. The proceeds fund Redemption of its 2028 Notes, termination of the ABL Credit Agreement and related fees and expenses.

Key Highlights

  • Clearwater Paper has $15 million drawn under the new revolving loan facility, while the $275 million term loan was fully drawn at closing.
  • Holders of the 4.750% Senior Notes due 2028 are due redemption on October 3, 2026, with $1.7 million of accrued interest paid through that date.
  • The credit agreement permits up to $100 million of additional revolving commitments after delivery of fiscal-year financial statements for 2027, subject to conditions.

The arrangement includes a $200 million revolving loan facility and a $275 million term loan facility. Clearwater Paper (NYSE: CLW) used the borrowing proceeds to redeem its 2028 Notes, settle and terminate the ABL Credit Agreement, and cover fees and expenses tied to the transactions. The revolving facility had $15 million drawn at closing, while the term loan was fully drawn.

New Facilities Replace Existing Lines

The new credit agreement replaces the term revolver under the Existing Credit Agreement and the revolving facility governed by the ABL Credit Agreement. Letters of credit can use up to $10 million of the revolving facility. Clearwater Paper may prepay and redraw revolving borrowings, subject to the agreement's conditions, while borrowings above applicable borrowing-base limits must be prepaid. Any increase depends on commitments from participating lenders and other requirements in the agreement. The credit agreement matures and the revolving lenders' obligations end on September 18, 2031.

$275M Notes Redemption Funded

Clearwater Paper notified holders of its 4.750% Senior Notes due 2028 that it would redeem the outstanding $275 million principal amount on October 3, 2026. Funds sufficient for the redemption were placed with the Trustee using proceeds from the new credit agreement. The company paid $1.7 million in accrued and unpaid interest through the redemption date. The 2028 Notes are to be fully redeemed on October 3, 2026, and obligations under the related indenture are discharged in connection with the transaction. The ABL Credit Agreement obligations of Clearwater Paper and its guarantors have also been discharged. The credit facilities replace both prior credit arrangements, and proceeds were used for the specified note redemption and ABL termination.

Rates, Repayment And Covenants

The initial rate for the term loan and the refinancing-date revolving borrowings is 8.25% per annum. The term loan requires annual principal payments of $5.5 million on December 1, beginning December 1, 2027. The agreement also requires mandatory principal reductions after certain asset sales, insurance or condemnation proceeds and Debt issuances that are not otherwise permitted. A current ratio of at least 1.75 to 1.00 is also required at each fiscal quarter-end. The agreement includes restrictions covering indebtedness, liens, mergers, capital expenditures, asset dispositions, certain capital-stock or debt redemptions, investments, acquisitions, affiliate transactions and changes to the nature of the business.