The company used the proceeds from the recapitalization to repay its
existing $320 million senior notes at 11.25%, to repay its existing
revolving line of credit, to pay a dividend to Sun Capital, and to pay
customary closing fees for a transaction of this size and type.
The new capital structure extends the maturity of Exopack’s debt,
reduces its cost of capital, increases its liquidity, and provides
significant availability under its revolving line of credit. This
affords Exopack the financial flexibility for continued growth through
investment in leading-edge equipment and innovative technologies, as
well as the ability to pursue future complimentary acquisitions.
“As a result of our recent recapitalization activities, Exopack is
positioned for future growth and prosperity. Moving forward, we will
continue to enhance our business model and operational competencies in
order to meet the needs of our stakeholders and maintain our position as
a leading provider of flexible packaging and coated films solutions,”
said Jack Knott, Chairman and CEO of Exopack Holding Corp.