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Buckeye Establishes $300 Million Senior Credit Facility

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  Published in House and Home on Friday, October 29th 2010 at 14:20 GMT by Market Wire
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MEMPHIS, Tenn.--([ BUSINESS WIRE ])--Buckeye Technologies Inc. (NYSE:BKI) announced today that it has established a new $300 million senior secured revolving credit facility. The maturity date on the new revolver is October 22, 2015, and the facility includes an increase option for an additional $100 million. This facility amends and restates the Companya™s existing $200 million senior secured credit facility. The initial interest rate on the new revolver is LIBOR plus 200 basis points, and this will drop by 25 bps when the Companya™s total debt / EBITDA ratio drops below 1.00. In addition to refinancing its existing credit facility, the Company plans to use the proceeds from this facility to provide liquidity for working capital, capital expenditures, permitted acquisitions and share repurchases, and for general corporate purposes. The transaction was led again this time by Bank of America as left lead arranger and administrative agent, along with J.P Morgan and Regions Bank as joint lead arrangers, and RBS Citizens Bank as syndication agent.

Buckeye Chairman John B. Crowe commented, aWe are very pleased to have this new credit facility in place, which moves our nearest debt maturity out from July 2012 to October 2015 and gives us the low cost, flexible financing we need to allocate capital in a balanced way between funding profitable, sustainable growth and high return investments, continued debt reduction and returning cash to shareholders.a

Buckeye, a leading manufacturer and marketer of specialty fibers and nonwoven materials, is headquartered in Memphis, Tennessee, USA. The Company currently operates facilities in the United States, Germany, Canada, and Brazil. Its products are sold worldwide to makers of consumer and industrial goods.

Certain matters discussed in this press release may constitute forward-looking statements within the meaning of the federal securities laws that involve risks and uncertainties, including but not limited to economic, competitive, governmental, and technological factors affecting the Companya™s operations, financing, markets, products, services and prices, and other factors.For further information on factors which could impact the Company and the statements contained herein, please refer to public filings with the Securities and Exchange Commission.