Neenah Completes Successful Debt Refinancing
June 30 2020 - 3:30PM
Business Wire
Neenah, Inc. (NYSE:NP) announced today that the Company has
entered into a Term Loan Credit Agreement, providing a Term Loan B
Facility (“the Facility”) of seven years in the amount of $200
million. The Facility is rated BBB-by S&P Global Ratings and
Ba3 by Moody's Investors Service. Neenah also announced today that
it is calling its outstanding 2021 notes for redemption in full on
July 16, 2020. Proceeds under the new Facility will be used to
redeem the $175 million of outstanding 5.25% 2021 notes, repay
borrowings under the Company’s senior secured revolving credit
facility, and for general corporate purposes. The Company also has
amended its Global Asset Based Lending Agreement to reduce the
revolving credit facility from $225 million to $175 million and
make certain other changes related to the refinancing and
resizing.
The interest rate under the new Facility will be determined
based on LIBOR or other published rates, with an expected initial
rate of approximately 5.00%. The Term Loan Credit Agreement
contains no financial maintenance covenants and includes other
customary covenants for agreements of this nature. The Facility may
be prepaid with a one percent call premium for the first 12 months,
after which it may be prepaid, in whole or in part, without premium
or penalty.
“We’re extremely pleased with the strong interest and resulting
favorable terms for this new credit agreement,” said Paul DeSantis,
Chief Financial Officer and Treasurer. “The facility supports our
strong balance sheet and financial position, and modestly lowers
our cash interest rate. Importantly, the structure also provides
additional flexibility and will allow Neenah to be well-positioned
to resume executing our growth strategies as global economies
recover.”
J.P. Morgan, Bank of Montreal and Goldman Sachs acted as Joint
Bookrunners and Joint Lead Arrangers on the Facility. J.P. Morgan
is the Administrative Agent on the Facility with Bank of Montreal
and Goldman Sachs as Co-Syndication Agents. Additional details on
the credit agreement may be found in the Form 8-K to be filed with
the Securities and Exchange Commission.
About Neenah
Neenah is a leading global specialty materials company focused
on premium niche markets that value performance and image. Key
products and markets include advanced filtration media, specialized
performance substrates used for digital transfer, tape and abrasive
backings, labels and other products, and premium printing and
packaging papers. The Company is headquartered in Alpharetta,
Georgia and its products are sold worldwide from manufacturing
operations in the United States, Europe and the United Kingdom.
Additional information can be found at the Company's web site,
www.neenah.com.
Cautionary Note Regarding Forward-Looking Statements
Certain statements in this press release may constitute
“forward-looking” statements as defined in Section 27A of the
Securities Act of 1933 (the “Securities Act”), Section 21E of the
Securities Exchange Act of 1934 (the “Exchange Act”), the Private
Securities Litigation Reform Act of 1995 (the “PSLRA”), or in
releases made by the U.S. Securities and Exchange Commission
(“SEC”), all as may be amended from time to time. Statements
contained in this press release that are not historical facts may
be forward-looking statements within the meaning of the PSLRA and
caution is given to investors that any forward-looking statements
are not guarantees or indicative of future performance. These
forward-looking statements rely on a number of assumptions
concerning future events and are subject to risks, uncertainties
and other factors, many of which are outside the Company's control
and could cause actual results to materially differ from such
statements. Such risks, uncertainties and other factors include,
but are not necessarily limited to, those set forth under the
captions “Cautionary Note Regarding Forward-Looking Statements”
and/or “Risk Factors” of the latest Form 10-K filed with the SEC as
periodically updated by subsequently filed Form 10-Qs (these
securities filings can be located at www.neenah.com). Unless
specifically required by law, the Company assumes no obligation to
update or revise these forward-looking statements to reflect new
events or circumstances. These cautionary statements are being made
pursuant to the Securities Act, the Exchange Act and the PSLRA with
the intention of obtaining the benefits of the “safe harbor”
provisions of such laws.
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version on businesswire.com: https://www.businesswire.com/news/home/20200630005989/en/
Neenah, Inc. Bill McCarthy Vice
President-Investor Relations 678-518-3278
Neenah (NYSE:NP)
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