Clearwater Paper refinances $275M in notes, pushes maturities to 2031
What's the deal? Clearwater PaperDealroom has a profile for this one. Try Dealroom → has closed a $275 million term loan led by AgWest Farm Credit PCADealroom has a profile for this one. Try Dealroom →, alongside a $200 million revolving credit facility, replacing its senior notes due 2028 and existing credit lines. The amended agreement, entered on September 18, matures in five years, on September 18, 2031.
The specifics: The term loan was fully funded at closing; the revolver had about $15 million outstanding. The revolving facility also carries an uncommitted $100 million increase option, subject to lender participation and other conditions.
Why now? The deal replaces $275 million of 4.750% senior notes coming due in 2028, extending the Spokane-based paperboard maker's debt maturity profile and easing near-term refinancing pressure. "This refinancing extends our debt maturities and provides greater certainty as we execute our long-term strategy," said president and chief executive officer Arsen Kitch.
The backdrop: Clearwater faces a weak paperboard market. Second-quarter 2026 sales fell year over year, and adjusted EBITDA from continuing operations was negative $8 million as lower prices weighed on results.
What's the endgame? The company has cut production and staffing at its Cypress Bend mill to address oversupply, moves it expects to yield $8–12 million in annual savings. Clearwater supplies paperboard packaging to North American converters, producing foodservice cartons, cups, and containers.
What could go wrong? This is a liquidity and maturity-management move, not growth capital. It extends runway but does not by itself resolve the operating pressures, and the cost of the new borrowing is a consideration.
The signal: The package is a defensive refinancing, among the larger such moves by value. It buys time for an independent paperboard supplier to work through soft prices and oversupply rather than funding expansion.
Read more: spokanejournal.com
Image credit: France1978
