Key Developments For KapStone Paper and Packaging Corporation
KapStone Paper and Packaging Corporation (KPPC.O) (Consolidated Issue listed on NASDAQ Global Market)
KapStone Paper and Packaging Corp Announces Sale Of Ride Rite Business
KapStone Paper and Packaging Corp announced the sale of the assets of its Ride Rite business to Illinois Tool Works Inc. Ride Rite is an inflatable dunnage bag manufacturer in Fordyce, AR. Terms of the transaction were not disclosed.
KapStone Paper and Packaging Corp Completes Acquisition of MeadWestvaco's Charleston Kraft Division
KapStone Paper and Packaging Corp announced that it has completed the acquisition of the Charleston Kraft Division of MeadWestvaco Corporation (CKD) from MeadWestvaco Corporation. Under the terms of the sale, KapStone acquired MWV's kraft paper mill in North Charleston, a lumber mill in Summerville, SC and chip mills located in Elgin, Hampton, Andrews and Kinards, SC, as well as 100 percent of Cogen South, LLC, the mill's on-site cogeneration facility. In 2007, the North Charleston mill produced 833,000 tons of saturating kraft, linerboard, and kraft folding carton board. MWV will continue to provide wood fiber for the North Charleston mill through a fiber supply agreement.
KapStone Paper and Packaging Corp Enters Into New Senior Credit Agreement For Acquisition Of Charleston Division
KapStone Paper and Packaging Corp announced that it has entered into a senior secured credit agreement for an aggregate of up to $555 million with Bank of America, N.A., as administrative agent. The credit facility evidenced by the credit agreement was successfully syndicated to over 15 other financial institutions. Proceeds from the credit facility, together with cash on hand, are expected to be used to pay for KapStone's purchase of the North Charleston Kraft Division (the "Charleston Division") from MeadWestvaco Corporation including related transaction fees, to repay KapStone's existing credit facility balance, and to provide for KapStone's working capital requirements. The funding under the credit agreement is subject to certain closing conditions, including the simultaneous closing of the acquisition of the Charleston Division, which is expected to occur in the third quarter of this year.
KapStone Paper and Packaging Corp To Purchase MeadWestvaco's North Charleston Kraft Division
KapStone Paper and Packaging Corp announced that it has signed an agreement with MeadWestvaco Corporation to purchase its North Charleston Kraft Division and related assets for $485 million in cash, subject to certain post-closing adjustments. KapStone expects to close the deal by the end of third quarter of 2008, subject to customary closing conditions, including regulatory review and receipt of financing.
KapStone Paper and Packaging Corp Reaffirms FY 2007 Guidance
KapStone Paper and Packaging Corp announced that it has reaffirmed its fiscal 2007 guidance and expects net sales in a range of $260-$264 million and adjusted EBITDA is expected to be in the range of $58-$ 60 million. According to Reuters Estimates, analysts on average are expecting the Company to report revenues of $259 million and EBITDA of $56 million for the same period.
