Clearwater Paper Pushes Debt Maturities to 2031 With New Loans

Clearwater Paper has replaced its existing credit facilities with a $275 million term loan and a $200 million revolving credit line, moving the new agreement’s maturity to September 18, 2031. The Spokane-based paperboard maker signed the deal on September 18 and announced it on September 21.

The term loan was fully funded at closing. Clearwater had drawn about $15 million of the revolving facility, which can be used to borrow and repay funds as needed.

The new credit agreement with AgWest Farm Credit and a lender syndicate replaces the company’s existing term revolver and asset-based lending facility. Clearwater said it used the new borrowing to repay and terminate the asset-based facility.

The company also plans to redeem all $275 million of its 4.75% senior notes due in 2028. Clearwater has set October 3, 2026, as the redemption date, according to its filing.

The revolver has an uncommitted option to add up to $100 million. That extra capacity is not guaranteed: it depends on lender participation, Clearwater’s delivery of its 2027 year-end financial statements and other conditions.

The refinancing shifts a major debt repayment from 2028 to 2031 and gives the company a new source of revolving credit. Clearwater CEO Arsen Kitch said the deal extends maturities and provides greater certainty as the company carries out its strategy.

The additional borrowing option may offer flexibility later, but it does not increase the company’s committed credit today. Investors will also be able to assess the cost of the new debt as interest payments come due under the agreement.

Clearwater makes paperboard packaging products for converters in North America. The new facilities address its debt schedule; the company has not announced a change to its operating plans alongside the refinancing.