The refinancing eliminates near-term maturity overhang (2028 notes) and provides committed liquidity through 2031. Monitor the Q3 2026 compliance certificate for the initial leverage ratio calculation and any potential patronage dividend impact on net interest cost.
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Executive Summary
Clearwater Paper refinanced its entire capital structure on September 18, 2026, entering into a new $475 million credit facility ($200M revolver + $275M term loan) with AgWest Farm Credit as agent. Proceeds redeemed the $275M 4.750% senior notes due 2028 and paid off the existing ABL facility, extending debt maturities to September 2031. The initial interest rate on the new facilities is 8.25% per annum.
Key Financial Metrics
Key Facts
- New $200M revolving credit facility ($15M drawn at close) with borrowing base limitations
- New $275M term loan facility (fully drawn at close)
- Both facilities mature September 18, 2031 (5-year term)
- Proceeds redeemed $275M of 4.750% senior notes due 2028 and terminated the ABL credit facility
- Initial interest rate on Term Loan and Revolving borrowings is 8.25% per annum
- Applicable margin ranges from 2.50% to 4.75% based on consolidated leverage ratio
- Uncommitted $100M accordion option available after FY2027 financial statements delivered
- Financial covenants: Debt Service Coverage Ratio ≥ 2.65x (stepping to 3.00x) and Current Ratio ≥ 1.75x
- Term loan requires annual principal payments of $5.5M starting December 1, 2027
- Accrued and unpaid interest of $1.7M paid through the October 3, 2026 redemption date
Financial Impact
Refinanced $275M of 4.750% senior notes due 2028 and an undrawn ABL facility into a $475M credit facility at an initial rate of 8.25% per annum, extending maturities by approximately 3 years versus the 2028 notes.
Risk Factors
- Initial interest rate of 8.25% is higher than the 4.750% coupon on the retired notes, increasing cash interest expense
- Financial covenants (DSCR ≥ 2.65x, Current Ratio ≥ 1.75x) restrict financial flexibility
- Borrowing base limitations on the revolver could constrain liquidity if eligible receivables/inventory decline
- Annual $5.5M term loan amortization begins December 2027, adding mandatory principal payments
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-396048 |
| Document: d112859d8k.htm | 0001193125-26-396048 |
| Document: d112859dex991.htm | 0001193125-26-396048 |
| Document: 0001193125-26-396048-index-headers.html | 0001193125-26-396048 |
| Document: 0001193125-26-396048-index.html | 0001193125-26-396048 |
| Document: 0001193125-26-396048.txt | 0001193125-26-396048 |
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Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 26, 2026 today | 8-K | $17.93 | awaiting T+20 | — | $13.23 (−26.21%) |
Sep 21, 2026 5w ago | 8-K | $21.29 $18.63 | ▼ −12.49% | ▼ −11.59% | $13.23 (−37.86%) |
Aug 8, 2026 11w ago | Institutional Cluster | $22.83 $20.33 | ▼ −10.95% | ▼ −10.04% | $13.23 (−42.05%) |
Mar 27, 2026 30w ago | DEFA14A | $14.17 $14.62 | ▲ +3.18% | ▼ −9.57% | $13.23 (−6.63%) |
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