$90m Credit Facility for Caraustar Industries Inked

September 12, 2011 / Elizabeth Buckley, Commercial Property Analyst

GE Capital, Corporate Finance is the administrative agent for a $90 million asset-based credit facility for Caraustar Industries Inc., which manufactures recycled and converted paperboard products.

$90m Credit Facility for Caraustar Industries Inked

GE, which served as lead arranger and bookrunner, said in a statement that the loan will be used to refinance debt and support working capital needs.

GE previously closed $115 million in senior secured credit facilities for Evolution1 (formerly Evolution Benefits, Inc.), a portfolio company of Genstar Capital, LLC, which was used to recapitalize Genstar’s acquisition of Evolution Benefits and support the company’s acquisition of Lighthouse1, LLC.

Founded in 1938, Austell, GA-based Caraustar is majority owned by private investment funds managed by Wayzata Investment Partners LLC, a Minneapolis-based private equity firm.

Caraustar consists of four business groups: Mill Group, Consumer Packaging, Industrial Packaging and Recovered Fiber Group.

The company serves the four principal recycled boxboard product end-use markets: tubes and cores; folding cartons; gypsum facing paper and specialty paperboard products.

“GE Capital has a deep industry expertise and knowledge of our business,” said William Nix, chief financial officer of Caraustar Industries.

“They have continued to provide us with capital to meet our evolving business needs through a challenging business environment.”

“Paper and packaging is one of our industry specialties,” said Tom Quindlen, president and CEO of GE Capital, Corporate Finance.

“We work closely with our customers to provide the right financing through all economic cycles.”

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