clearwater paper corp (CLW) Key Developments
Clearwater Paper Corporation Presents at RBC Capital Markets 2014 Global Industrials Conference, Sep-10-2014 10:55 AM
Aug 19 14
Clearwater Paper Corporation Presents at RBC Capital Markets 2014 Global Industrials Conference, Sep-10-2014 10:55 AM. Venue: The Mandarin Oriental Hotel, 3752 Las Vegas Blvd, Las Vegas, Nevada, United States. Speakers: John D. Hertz, Chief Financial Officer and Senior Vice President of Finance.
Clearwater Paper Corporation Completes Offering of $300 Million Aggregate Principal Amount of 5.375% Senior Notes Due 2025 and Announces Redemption of 7.125% Senior Notes Due 2018
Jul 29 14
Clearwater Paper Corporation announced that on July 29, 2014 it completed its previously announced offering of $300 million aggregate principal amount of 5.375% Senior Notes due 2025. The notes were issued pursuant to an indenture, dated as of July 29, 2014 (the Indenture), by and among the company, the existing direct and indirect domestic subsidiaries of the company and U.S. Bank National Association, a national banking association, as trustee. The notes were offered in the United States to qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the Securities Act) and outside the United States to non-U.S. persons in reliance on Regulation S under the Securities Act. Interest on the Notes will accrue at the rate of 5.375% per annum and will be payable semiannually in arrears on February 1 and August 1, commencing on February 1, 2015. Interest on overdue principal and interest will accrue at a rate that is 1% higher than the then-applicable interest rate on the Notes. The company will make each interest payment to the holders of record of the Notes on the immediately preceding January 15 and July 15. The notes are unsecured and effectively subordinated to all of the company's existing and future secured debt, including borrowings under its existing secured revolving credit facility. The Notes are guaranteed by each of the company's existing direct and indirect domestic subsidiaries, and will be guaranteed by each of the company's future direct and indirect domestic subsidiaries, subject to certain exceptions (each, a Subsidiary). Each Subsidiary must provide a guarantee of the payment of principal, premium and interest on the notes on an unsecured basis. If the company is unable to make payments on the Notes when they are due, each subsidiary guarantor is obligated to make such payments. If the company experiences specific kinds of changes of control, the company must offer to repurchase the Notes from holders at a price of 100% of the principal amount plus accrued and unpaid interest to the repurchase date. On July 24, 2014, the company entered into the Ninth Amendment to the Loan and Security Agreement (the ABL Amendment) with Bank of America, N.A., as Administrative Agent, and the financial institutions party thereto. The ABL Amendment amends the negative covenants contained in the Company's existing Loan and Security Agreement, dated as of November 26, 2008, as amended, to permit the offering of the Notes. On July 29, 2014, the Company notified the holders of the company's existing 7.125% Senior Notes due 2018 (the existing notes) that the company elected to redeem all of the currently outstanding $375 million aggregate principal amount of Existing Notes on August 28, 2014, in accordance with the indenture governing the Existing Notes. Using the proceeds from the issuance of the Notes, together with cash on hand and a draw under its revolving credit facility, the company irrevocably deposited with the Trustee sufficient funds to fund the redemption of the existing notes. As a result, the company's and the guarantors' obligations under the indenture governing the existing notes have been discharged.
Clearwater Paper Proposes Offering of Senior Notes Due 2025
Jul 24 14
Clearwater Paper Corporation announced a proposed offering of $300 million aggregate principal amount of senior notes due 2025. Clearwater Paper intends to use the net proceeds along with company funds and funds drawn from its revolving credit facility to redeem all of its outstanding 7.125% senior notes due 2018. As the offering is a private placement, the notes will be offered and sold only to qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933 and to certain non-U.S. persons in transactions outside the United States in reliance on Regulation S under the Securities Act. The notes to be offered will not be registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This press release does not constitute an offer to sell or the solicitation of an offer to buy any of the notes nor shall there be any sale of the notes in any jurisdiction in which such offer, solicitation or sale would be unlawful. This news release is being issued pursuant to and in accordance with Rule 135c under the Securities Act.
Clearwater Paper Corporation Provides Earnings Guidance for the Third Quarter 2014; Provides Capital Expenditure Guidance for 2014
Jul 23 14
Clearwater Paper Corporation provides earnings guidance for the third quarter 2014. For the quarter The company expects net sales to be up 2% to 4% due to higher volumes in Paperboard and higher price mix for both divisions, and consolidated operating margin to be in the range of 9% to 10.5%. In addition, The company expects adjusted SG&A to be flat, adjusted corporate spending to be $12 million to $13 million, net interest expense to be about $11 million, and the adjusted tax rate for the third quarter is 36% plus or minus a couple of %. All these variables combined are expected to result in the third quarter EBITDA range of $68 million to $76 million.
Capital expenditures are expected to total approximately $78 million in 2014.
Clearwater Paper Corporation Announces Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended June 30, 2014; Provides Tax Rate Guidance for the Full Year 2014
Jul 23 14
Clearwater Paper Corporation announced unaudited consolidated earnings results for the second quarter and six months ended June 30, 2014. For the quarter, the company reported net sales were $498.76 million against $471.002 million a year ago. Income from operations was $33.08 million against $29.71 million a year ago. Earnings before income taxes were $22.39 million against $18.62 million a year ago. Net earnings were $12.45 million against $11.66 million a year ago. Diluted earnings per share were $0.61 against $0.52 a year ago. EBITDA was $55.1 million against $52.97 million a year ago. Adjusted EBITDA was $57.28 million against $52.84 million a year ago. The increase in EBITDA and Adjusted EBITDA was due primarily to strong paperboard markets and pricing as well as increased contribution from the company's through-air-dried, or TAD, expansion. Adjusted net earnings were $15.25 million or $0.74 diluted earnings per share against $11.58 million or $0.51 diluted earnings per share a year ago.
For the six months, the company reported net sales were $983.68 million against $931.83 million a year ago. Income from operations was $53.6 million against $42.2 million a year ago. Earnings before income taxes were $32.18 million against $3.06 million a year ago. Net earnings were $18.68 million against $10.78 million a year ago. Diluted earnings per share were $0.90 against $0.47 a year ago. Net cash flows from operating activities were $94.91 million against $21.97 million a year ago. Additions to plant and equipment were $32.61 million against $31.41 million a year ago. EBITDA was $97.85 million against $87.6 million a year ago. Adjusted EBITDA was $112.03 million against $91.13 million a year ago. Adjusted net earnings were $29.16 million or $1.40 diluted earnings per share against $14.02 million or $0.61 diluted earnings per share a year ago.
The company expects its annual GAAP and adjusted tax rate to be approximately 38% for 2014.