Chesapeake Corp. (CSK) Announces Refinancing Plans

August 1, 2008 8:39 AM EDT

Chesapeake Corporation (NYSE: CSK) today announced that it has developed a comprehensive refinancing plan to address the upcoming maturity of its bank credit facility and its general liquidity needs. Chesapeake expects that, upon completion, this proposed refinancing plan will address the company's short- and long-term capital needs while providing Chesapeake with the necessary financial flexibility to improve earnings and create value for all stakeholders by realizing the benefits associated with an improving business platform that is focused on packaging applications for the pharmaceutical and healthcare industries and other specialty packaging end-use markets.

The proposed refinancing plan is expected to include:

1. new senior secured credit facilities to be used to fully repay the company's existing $250-million senior secured credit facility and provide incremental liquidity, and
   
2. an offer to exchange the company's outstanding 10-3/8% Sterling-denominated senior subordinated notes due in 2011 and its 7% euro-denominated senior subordinated notes due in 2014 for new debt and equity securities.

Chesapeake Corporation manufactures and supplies specialty paperboard packaging products worldwide.

Related Categories

Corporate News

Stocks Mentioned

Add Your Comment

Name

Subject

Body

Verification can't see the text?
click here to refresh the image.
what's this?