News

Paper Company Completes Acquisition of Containerboard Company

The stock purchase was recently completed.

July 24, 2013
/ Print / Reprints /
ShareMore
/ Text Size+

 KapStone Paper and Packaging Corporation recently announced that it has completed the stock purchase of Longview Fibre Paper and Packaging Inc. ("Longview"). Longview, headquartered in Longview, Wash., is a leading manufacturer of high-quality containerboard, lightweight high-performance multiwall paper, specialty Kraft papers and corrugated products. Longview employs about 1,800 people.

"Today we are welcoming Longview's team as the newest members of KapStone," states Roger W. Stone, chairman and chief executive officer. "The Longview team orchestrated a transformation that is truly, in my experience, the most amazing that I've actually ever seen in my 55 years in the industry. We're thrilled and delighted to officially have them with us."

Matt Kaplan, KapStone's president and chief operating officer, further states, "Longview continues to demonstrate their excellence by delivering outstanding results. In the second quarter, Longview's revenues and adjusted EBITDA of $228 million and $49 million, respectively, yielded an adjusted EBITDA margin of 20.7 per cent, one of the best in the industry. Even more notable was that they achieved these results despite incurring $4.3 million of expense for their once every five year planned mill maintenance outage performed in April. June was particularly strong as adjusted EBITDA for the month exceeded $19 million benefitting from the partial implementation in the quarter of the $50 per ton containerboard and associated box price increases."  

Funding for the acquisition came from borrowings under the $1.675 billion amended and restated senior secured credit facility led by Bank of America, Barclays Bank and Well Fargo Bank. The amended facility now consists of Term Loan A-1 of $805 million maturing over five years, Term Loan A-2 of $470 million maturing over 7 years with one per cent amortization in each of the first 6 years with the remaining principal due at the end of year seven, and a $400 million revolving credit facility. The initial blended interest rate will be 2.6 percent as determined from the LIBOR based pricing grid, and the rate is subject to change over the life of the loans as LIBOR rates and KapStone's debt to EBITDA ratio change.

Under the terms of Longview's existing $480 million, 8 percent senior secured notes, current noteholders will be notified shortly regarding redemption of the notes, including a 4 percent change of control penalty. The redemption is expected to take 30 days. 

Did you enjoy this article? Click here to subscribe to BRAND PACKAGING Magazine. 

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

10th Annual Packaging That Sells Conference, Chicago, October 2012

Posted Date: October 29, 2013

BRANDPACKAGING’s packaging conference returned for a tenth year with a focus on a single message: Make It Matter.

2/12/14 2:00 pm EST

Packaging Matters™: A study on packaging’s impact on shopping behavior, product satisfaction and trends in the global marketplace

On-Demand Packaging Matters™ is MWV’s study of the role of packaging in product satisfaction.  In its second iteration, the research has expanded to 10 markets: China, India, Brazil, Russia, Turkey, South Africa, U.K., Germany, Japan and the U.S. We study packaging because it matters to brand owners, retailers and consumers around the world. Packaging impacts shopping behavior, influences product satisfaction and motivates consumers in global markets in different ways.

THE MAGAZINE

Brand Packaging Magazine

brand packaging april 2014

April 2014

The April 2014 issue examines the topic of "Green Fatigue."  You can also read the issue at the Digital Editions.

Table Of Contents Subscribe

THE BRAND PACKAGING STORE

BP_DG_2013Cover.gif
Design Gallery Volume 11

Design Gallery Volume 11 is not just a study in good design. It’s a look at how packaging can successfully demonstrate structural and graphic innovation, make strong shelf impact, meet consumer, shopper and retailer needs and support and convey the brand story

More Products

SDG

STAY CONNECTED

facebook_40.png twitter_40px.png  youtube_40px.pnglinkedin_40px.png