Orchids Paper Products Finalizes Agreements with Fabrica
June 4, 2014 - Orchids Paper Products Company today announced the closing of the transactions comprising a strategic alliance with Fabrica de Papel San Francisco, S.A. de C.V., as previously discussed in Orchids' press release dated May 5, 2014. This alliance is expected to allow Orchids to effectively and efficiently service customers in the western United States.
Orchids paid an aggregate of $36.7 million under the agreements, consisting of shares of Orchids common stock having a value of $20 million and cash of $16.7 million, which Orchids will fund with a new term loan from U.S. Bank National Association as discussed below.
"We are excited to begin our partnership with Fabrica," stated Jeffrey Schoen, President and CEO of Orchids. "This alliance is expected to allow us to cost effectively provide high-quality products and superior customer service to a portion of the market that was previously difficult to access. It supports our vision of being recognized as a national supplier of high quality consumer tissue products in the value, premium and ultra-premium tier product categories, and we are confident it will lead to long-term value for our stockholders."
Additionally, Orchids announced its entrance into a credit agreement with U.S. Bank. The $75 million agreement includes a $45 million revolving credit line due June 2019 and a $30 million term loan due June 2020.
Orchids Paper Products Company is an integrated manufacturer of tissue paper products serving the at home private label consumer market. To learn more visit: www.orchidspaper.com.
SOURCE: Orchids Paper Products Company