Wausau Paper announced recently that the Company has entered into a Note Purchase and Private Shelf Agreement with Prudential Investment Management and affiliates. The Agreement provides for the issuance of $50 million of Series A Senior Notes due in 2017, having an interest rate of 5.69% per annum. Proceeds will be used to pay down revolving debt and prepare the company to meet debt obligations maturing in 2011. In addition, the Agreement establishes a three-year Private Shelf Facility under which up to $125 million of additional promissory notes may be issued under terms the parties agree upon at the time of issuance.
Commenting on the agreement, Scott P. Doescher, executive vice president finance said, "We are pleased with the flexibility offered through the Private Shelf Facility and the cost-effective financing represented by our Series A Senior Notes. With our existing credit facilities expiring in the third-quarter of 2011, the new financing arrangement helps prepare us to meet maturing obligations while expanding our near-term credit capacity. Building on the balance sheet improvements achieved over the last year, the agreement enhances our capital structure and positions us to pursue future growth opportunities."
