ORCHIDS PAPER PRODUCTS COMPANY (NYSEMKT:TIS) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01. Entry into a Material Definitive Agreement.
On January 19, 2017, Orchids Paper Products Company (the Company)
entered into Amendment No. 3 (the Amendment) to its SecondAmended
and Restated Credit Agreementdated June 25, 2015 by and among the
Company, U.S. Bank National Association (U.S. Bank) and the other
lenders party thereto (the Credit Agreement).
The Amendment, among other things, (i) increases the amount each
lender is committed to make available to the Company; (ii)
modifies the pricing grid applicable to interest rates and the
unused commitment fee under the Credit Agreement in order to
provide for an additional pricing level applicable based on the
total leverage ratio of the Company; (iii) amends the financial
covenant in the Credit Agreement related to maintenance of a
maximum total leverage ratio by increasing the permitted total
leverage ratio for fiscal quarters ending on or prior to March
31, 2018; and (iv) amends the terms of the Draw Loan (as defined
in the Credit Agreement) to provide for additional advance
amounts available to the Company for the purposes of acquiring or
improving real estate.
More particularly:
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The total loan commitment was increased from $167.2 million to $176.1 million. |
| The fees paid for the amendment total $0.2 million. |
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The maximum twelve-month rolling leverage ratios are allowed to increase to 5.75 to 1 prior to being decreased to 3.5:1, as originally scheduled. |
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Eurocurrency interest rate margins vary with the degree of leverage and range between 1.25% and 4.0%. |
Obligations under theCredit Agreementremain secured by
substantially all of the Companys assets.Also, the Credit
Agreement continues to include representations and warranties,
and affirmative and negative covenants customary for financings
of this type, including, but not limited to, limitations on
additional borrowings, additional investments and asset sales.
The foregoing summary is not complete and is qualified in its
entirety by reference to the full text of the Amendment,a copy of
which is attached as Exhibit 10.1 to this Form 8-K and is
incorporated herein by reference.
Item2.03.Creation of a Direct Financial Obligation or an
Obligation under and Off-Balance Sheet Arrangement of a
Registrant.
The information provided in Item 1.01 of this Form 8-K is
incorporated by reference.
Item 9.01. Financial Statements and Exhibits.
| (d) |
Exhibits. See the Exhibit Index which is hereby incorporated by reference. |
About ORCHIDS PAPER PRODUCTS COMPANY (NYSEMKT:TIS)
Orchids Paper Products Company is a supplier of consumer tissue products. The Company produces bulk tissue paper, known as parent rolls, and converts parent rolls into finished products, including paper towels, bathroom tissue and paper napkins. The Company offers customers an array of private label products across the value, premium and ultra-premium market segments. It is an integrated manufacturer of tissue paper products serving the at-home market and the away from home market. The Company sells its products to grocery stores, grocery wholesalers and cooperatives, convenience stores, janitorial supply stores and stores in the food service market. The Company’s products are sold primarily under its customers’ private labels and, to a lesser extent, under its brand names, such as Colortex, My Size, Velvet, Big Mopper, Linen Soft, Soft & Fluffy, Virtue, Truly Green, Golden Gate Paper, Big Quality and Tackle. ORCHIDS PAPER PRODUCTS COMPANY (NYSEMKT:TIS) Recent Trading Information
ORCHIDS PAPER PRODUCTS COMPANY (NYSEMKT:TIS) closed its last trading session down -0.16 at 28.78 with 360,803 shares trading hands.