PaperWorks Industries Finalizes Deleveraging and Recapitalization Transaction

PaperWorks Industries Inc., Bala Cynwyd, Pa., USA, and certain of its affiliates completed a comprehensive financial restructuring of the company's debt and equity. Among other things, the proposed restructuring reduced the company's funded indebtedness by approximately $280 million or 70%, through a repayment of its existing ABL credit facility and an exchange of the company's 9.5% Senior Secured Notes due in August 2019 for new debt and new common equity in the reorganized company. 

The company's new capital structure consists of a $114 million term-loan due in February 2023, inclusive of $70 million of new capital.

"The completion of this transaction provides a strong and financially flexible capital structure that provides sufficient liquidity to operate and grow our business and enables us to maximize value for our stakeholders," said C. Anderson "Andy" Bolton, president and CEO of the company. "Our new ownership group is excited to partner with us as we drive our growth strategy. We are committed to providing world-class solutions for our customers, enabling them to win in the marketplace. I would like to again thank our customers, vendors, and employees for their patience and support as we moved through this process."

PaperWorks Industries is an integrated North American full-service provider of recycled paperboard and specialized folding cartons for packaging applications. The company specializes in providing folding carton solutions for a wide variety of market sectors including food, beverage, personal care, pharmaceuticals, nutraceuticals, and medical devices, and is also known for its state-of-the art, extended color gamut printing capability which creates shelf-differentiating graphics.

PaperWorks has invested more than $60 million over the past three years to upgrade its paperboard mills and folding carton converting plants and is committed to the highest sustainable forestry and procurement standards. Product certifications include the Forest Stewardship Council (FSC) and 100% Recycled Paperboard Alliance (RPA100). More information is available online.