Clearwater Paper Corporation entered into a Second Amended and Restated Credit Agreement on September 18, 2026. The agreement, executed with AgWest Farm Credit, PCA as the administrative agent and a syndicate of lenders, replaces the company's previous term revolver facility and ABL revolving credit facility. The new financing package consists of a $200 million revolving loan facility and a $275 million term loan facility, both of which were fully funded at closing.
The proceeds from these borrowings were utilized to redeem in full the company’s $275 million aggregate principal amount of 4.750% Senior Notes due 2028. The notes were redeemed on October 3, 2026, with accrued and unpaid interest of $1.7 million paid at that time. Additionally, the company paid in full and terminated its existing ABL Credit Agreement.
The new credit agreement matures on September 18, 2031, extending the company's long-term debt maturity profile by five years. Borrowings under the revolving facility are subject to a borrowing base based on eligible receivables and inventory, with up to $10 million available for letters of credit. The company has the option to increase the revolving facility commitments by up to $100 million after delivering its 2027 year-end financial statements, provided participating lenders agree.
Under the terms of the agreement, the term loan facility requires annual principal installments of $5.5 million, beginning December 1, 2027, with the remaining balance due at maturity. Interest rates are calculated based on SOFR or a fixed rate, plus a margin between 2.50% and 4.75% dependent on the company’s consolidated leverage ratio. The initial interest rate for the refinancing date borrowings is 8.25% per annum. The obligations are secured by liens on substantially all personal property assets and, upon satisfaction of conditions, all material real property assets, including the company's mills in Georgia, Arkansas, and Idaho.
The agreement includes financial covenants requiring the company to maintain a Debt Service Coverage Ratio of at least 2.65 to 1.00 through the fiscal quarter ending June 30, 2027, increasing to 3.00 to 1.00 thereafter. The company must also maintain a current ratio of at least 1.75 to 1.00. Events of default under the agreement include payment failures, covenant breaches, bankruptcy, and changes in control.
