KapStone Paper and Packaging Corporation (NYSE:KS) Files An 8-K Entry into a Material Definitive Agreement

ME Staff 8-k
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KapStone Paper and Packaging Corporation (NYSE:KS) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01 Entry into a Material Definitive Agreement.

KapStone Paper and Packaging Corporation (the “Company”) entered into Amendment No. 3 to Receivables Purchase Agreement dated as of June 2, 2017, but effective as of June 1, 2017 (the “Amendment”), amending its Receivables Purchase Agreement dated as of September 26, 2014 (as previously amended, the “Receivables Purchase Agreement”) among the Company, as Servicer, KapStone Receivables, LLC, a Delaware limited liability company and indirectly wholly-owned, bankruptcy remote subsidiary of the Company, as Seller, the Purchasers from time to time party thereto, and Wells Fargo Bank, N.A., as Administrative Agent.

to the Amendment, among other modifications provided therein, (i) the “Facility Termination Date” under the Receivables Purchase Agreement has been extended from June 6, 2017 to June 1, 2018, (ii) the “Aggregate Commitment” of the Purchasers under the Receivables Purchase Agreement has been increased from $275,000,000 to $325,000,000, and (iii) certain definitions used to determine the maximum amount that may be outstanding under the Company’s accounts receivable securitization program were added or modified, in each case, in a manner favorable to the Company.

The foregoing description of the Amendment is qualified in its entirety by reference to the full text of the Amendment, a copy of which is attached as Exhibit 10.1 hereto and is incorporated herein by reference.

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

The disclosure provided in Item 1.01 of this Current Report on Form 8-K is incorporated by reference.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibit

10.1 Amendment No. 3 to Receivables Purchase Agreement dated as of June 2, 2017, but effective as of June 1, 2017, by and among KapStone Paper and Packaging Corporation, as Servicer, KapStone Receivables, LLC, as Seller, the Purchasers party thereto, and Wells Fargo Bank, N.A., as Administrative Agent.

 


About KapStone Paper and Packaging Corporation (NYSE:KS)

KapStone Paper and Packaging Corporation is engaged in the production of containerboard, corrugated products and specialty paper. The Company operates through two segments: Paper and Packaging, and Distribution. The Company operates approximately four paper mills. It produces approximately 2.7 million tons of containerboard and specialty paper at its mills in North Charleston, South Carolina; Roanoke Rapids, North Carolina; Cowpens, South Carolina, and Longview, Washington. The Company’s Paper and Packaging segment manufactures and sells a range of container boards, corrugated products and specialty paper for industrial and consumer markets. The Distribution segment, which operates under the Victory and Golden State Container trade names, provides its customers with packaging solutions and services, and distributes corrugated packaging materials, as well as other specialty packaging materials, such as plastics, wood, void fill, tapes and stretch wraps.