GE Capital Joint Leads Exit Financing for Smurfit-Stone
Wednesday, June 30, 2010
GE Capital, Restructuring Finance announced it is co-collateral agent in a $650 million asset-based credit facility to Smurfit-Stone Container Corporation, an integrated containerboard and corrugated packaging producer and recycler. The loan supports the company's exit from bankruptcy protection under a Plan of Reorganization. GE Capital Markets served as joint lead arranger.
Headquartered in Chicago, IL, and Creve Coeur, MO, Smurfit-Stone Container operates approximately 145 facilities with over 17,000 employees in the United States, Canada, Mexico and Asia.
"The combination of GE's experience with paper and packaging companies and expertise in turnaround finance helped us advance our reorganization," said Tim Griffith, vice president and treasurer of Smurfit-Stone. "We value our relationship with GE and their ability to continue to make significant financial commitments."
"We're dedicated to meeting the restructuring finance needs of mid-sized and large companies," said Rob McMahon, managing director of GE Capital, Restructuring Finance. "Providing businesses with the critical liquidity to execute their objectives is our specialty."
Smurfit-Stone Container Corporation successfully completed its financial restructuring and has officially emerged from Chapter 11 as a newly reorganized, publicly traded company that will begin trading on the New York Stock Exchange under the symbol SSCC effective July 1, 2010.
The company's Plan of Reorganization, which was confirmed by the U.S. Bankruptcy Court on June 21, 2010, and recognized by a Canadian court order, has become effective. All outstanding closing conditions have been satisfied or waived.
In conjunction with the company's completion of its financial restructuring, the company announced a new board of directors, including Ralph F. Hake, who has been appointed non-executive chairman of the Smurfit-Stone board of directors. Hake is the former chairman and CEO of Maytag Corporation.
As previously announced, in accordance with the terms of the Plan, Smurfit-Stone's previous common stock and preferred stock have been cancelled. However, the plan provides that 2.25% of the New Smurfit-Stone Common Stock Pool will be distributed pro rata to the company's previous preferred stockholders and 2.25% of the New Smurfit-Stone Common Stock Pool will be distributed pro rata to the company's previous common stockholders. Upon completion of all distributions to former creditors under the Plan (as well as holders of the former preferred stock and the former common stock), the company will have approximately 100 million shares of common stock issued and outstanding.
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