KP Tissue's Kruger closes $165M senior note financing

Executive Summary

• Kruger Products Inc. (KPI) has closed a private placement offering of $165 million in principal amount of 6.250% senior unsecured notes due December 10, 2032.
• Net proceeds were primarily used to repay outstanding borrowings under KPI’s senior credit facilities, with the balance allocated for general corporate purposes.
• In connection with the financing, KPI amended and restated its syndicated credit agreement, increasing the facility amount to $250 million and the accordion feature to $100 million.

Key Details

• Instrument: Senior unsecured notes.
• Principal Amount: $165 million.
• Interest Rate: 6.250% per annum.
• Maturity Date: December 10, 2032.
• Issuance Method: Private placement.
• Interest Payment Schedule: Semi-annually in arrears on June 10 and December 10, commencing June 10, 2026.
• Use of Proceeds:
  • Repayment in full of borrowings outstanding under the senior credit facilities of Kruger Products SB Inc. (KPSB).
  • Balance of net proceeds for general corporate purposes.
• Credit Facility Amendments:
  • Syndicated credit agreement amended and restated.
  • Facility amount increased from $230 million to $250 million.
  • Accordion feature increased from $75 million to $100 million.
  • KPSB added as a restricted credit party.