Clearwater Paper signed a fully drawn $275 million term loan and $200 million revolver, both due in 2031. Proceeds funded the redemption of $275 million in 2028 notes, scheduled for Oct. 3; the loan's initial rate is 8.25%, versus the notes' 4.75% coupon.
Proceeds also repaid the existing asset-based revolving facility; about $15 million was drawn at closing under the new revolver. Annual term-loan principal payments of $5.5 million begin in December 2027. A further $100 million increase option is uncommitted and subject to delivery of 2027 year-end financial statements, lender participation and other conditions, so it is not current liquidity.
First-half operating cash inflow was $69.5 million, compared with a $26.7 million outflow a year earlier. The improvement benefited from $32.5 million in insurance recoveries, about $30 million in tax refunds and inventory reductions. Whether the refinancing strengthens the balance sheet depends on recurring cash generation, interest costs and debt service.
