UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): July 31, 2009
ORCHIDS PAPER PRODUCTS COMPANY
(Exact Name of Registrant as Specified in its Charter)
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Delaware |
001-32563 |
23-2956944 |
4826 Hunt Street
Pryor, Oklahoma 74361
(Address of Principal Executive Offices)
(918) 825-0616
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 1.01. Entry into a Material Definitive Agreement.
On July 31, 2009, Orchids Paper Products Company (the “Registrant”) entered into Amendment Four to Second Amended and Restated Agented Credit Agreement (the “Amendment”) with its existing bank group to establish an additional construction loan. The Registrant’s bank group includes Bank of Oklahoma, N.A. and Commerce Bank, N.A. The new construction loan will be used to finance the purchase of land, and construction of a new 270,000 square foot warehouse and distribution center. The Amendment includes the following provisions:
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establish a construction loan that provides for periodic loan advances up to a maximum principal amount of $6.7 million to finance the warehouse project, which includes the purchase of land and the construction of a new 270,000 square foot distribution center. The construction loan will convert to a term loan in August 2010 and will mature in July 2016. The loan will be based on an eighty percent (80%) advance rate of the costs of construction of the project; |
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extend the availability and maturity of the existing revolving line of credit to April 9, 2011; |
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increase the annual unfunded capital expenditures limit to $3.5 million; |
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change the LIBOR margin grid and include a 3.5% all-in interest rate floor; and |
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reduce the Funded-Debt-To-EBITDA covenant limit to 3.25 to 1. |
The foregoing summary is not complete. A copy of the Amendment is attached as Exhibit 10.1 to this report and is incorporated herein by reference.
Item 2.03. Creation of a Direct Financial Obligation or an Obligation under and Off-Balance Sheet Arrangement of a Registrant.
The Information provided in Item 1.01 of this Form 8-K is incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits.
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Exhibits. See the Exhibit Index which is hereby incorporated by reference. |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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ORCHIDS PAPER PRODUCTS COMPANY | |
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Date: August 6, 2009 |
By: |
/s/ Keith Schroeder |
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Keith Schroeder |
Exhibit Index
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Exhibit |
Description |
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10.1 |
Amendment Four to Second Amended and Restated Agented Credit Agreement, dated July 31, 2009. |