Northbrook, Illinois, USA, 12 June 2008 -- /PRNewswire/ -- KapStone Paper and Packaging Corporation (Nasdaq: KPPC) today announced that it has entered into a senior secured credit agreement for an aggregate of up to USD 555 million with Bank of America, N.A., as administrative agent.

The credit facility evidenced by the credit agreement was successfully syndicated to more than 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 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 2008.

Headquartered in Northbrook, Illinois, KapStone Paper and Packaging Corporation is a leading North American producer of kraft paper and inflatable dunnage bags. The company is the parent corporation of KapStone Kraft Paper Corporation which includes a paper mill in Roanoke Rapids, North Carolina, and RideRite, an inflatable dunnage bag manufacturer in Fordyce, Arkansas. The business employs approximately 700 people.

Source: KapStone Paper and Packaging Corporation