Clearwater Paper Corporation (NYSE:CLW) signed a definitive agreement to acquire Paperboard manufacturing facility of Graphic Packaging Holding Company for $700 million on February 19, 2024. The purchase price is funded through a combination of cash on hand and committed debt financing. On February 19, 2024, Clearwater entered into a commitment letter with AgWest Farm Credit, PCA (AgWest), CoBank, FCB (CoBank) and Coöperatieve Rabobank U.A. (Rabobank), in which AgWest and CoBank, agreed to provide a 5-year term revolver credit facility in an aggregate principal amount of up to $270 million via a refinancing of the Company?s existing term revolver credit agreement in the event that the required consents or amendments from the existing lenders and voting participants cannot be obtained. In addition, AgWest agreed to provide a new 7-year farm credit term loan facility in the aggregate principal amount of $340 million and Rabobank agreed to provide a new 5-year commercial bank term loan facility in the aggregate principal amount of $150 million.

The transaction is subjected to regulatory approvals and expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act. The transaction is expected to be completed in the second Quarter of 2024. TD Securities (USA) LLC acted as financial advisor, Pillsbury Winthrop Shaw Pittman LLP acted as legal advisor to Clearwater Paper Corporation (NYSE:CLW). BofA Securities, Inc. acted as financial advisor, Scott Kitchens, Justin Howard, Amber Pelot, Sarah Hess Mackenzie, Douglas Arnold, Richard Grice, Paul Hespel, Scott Ortwein, David Rutherford, Sam Kaywood, Blake MacKay, Brian Harvel, Brian Harvel and Brett Coburn of Alston & Bird LLP acted as legal advisor to Graphic Packaging International, LLC.