York, Pennsylvania, USA, 21 November 2011 – Glatfelter (NYSE: GLT) today announced an amendment to its existing revolving credit agreement, which increased the size, modified the fee and interest structure, and extended the maturity.
The amendment increased the company’s revolving credit facility from USD 225 million to USD 350 million with a USD 100 million accordion feature, extended the term through November 2016, and provides a more favorable pricing grid. The company will use the facility to retire in December its USD 100 million 7⅛% notes due May 2016, and for working capital purposes, growth initiatives, and other general corporate purposes. The company expects to record an after-tax charge of USD 6.3 million in the fourth quarter related to the Note redemption.
Dante C. Parrini, chairman and chief Executive officer, said, “We are very pleased with the amendment to our bank facility. The retirement of the USD 100 million notes will create immediate savings and has a quick payback, and the increased size and extended term will allow us to continue to execute our plans for investing in our businesses and for pursuing acquisitions."
Headquartered in York, Pennsylvania, Glatfelter is a global manufacturer of specialty papers and fiber-based engineered materials, offering more than a century of experience, technical expertise, and world-class service. U.S. operations include facilities in Spring Grove, Pennsylvania, and Chillicothe and Fremont, Ohio. International operations include facilities in Canada, Germany, France, the United Kingdom, and the Philippines, a representative office in China, and a sales and distribution office in Russia. Glatfelter’s sales approximate USD 1.5 billion annually and its common stock is traded on the New York Stock Exchange under the ticker symbol GLT. Additional information may be found at www.glatfelter.com.