Business News

Appleton Announces Successful Completion of Private Exchange Offer and Consent Solicitations

Friday 02. October 2009 - Appleton Papers Inc. announced today that it has successfully completed its previously announced private offers to exchange its outstanding 8.125% Senior Notes due 2011 and 9.75% Senior Subordinated Notes due 2014 (collectively, the "old notes") for new 11.25% Second Lien Notes due 2015 (the "new notes").

As of September 25, 2009, Appleton had received tenders of old notes representing approximately 84% of the outstanding aggregate principal amount of the 8.125% Senior Notes due 2011 and approximately 77% of the outstanding aggregate principal amount of the 9.75% Senior Subordinated Notes due 2014. In exchange for the tendered old notes, Appleton has issued new notes in an aggregate principal amount of $161,766,000. The successful exchange extends Appleton’s debt maturity profile and reduces Appleton’s balance sheet leverage.

In conjunction with each exchange offer, Appleton also solicited consents to amend each of the indentures governing the old notes to eliminate certain provisions, including substantially all restrictive covenants, to eliminate certain events of default and to eliminate or modify related provisions.

On September 10, 2009, Appleton, the guarantors of the old notes and U.S. Bank National Association, as trustee, executed supplemental indentures giving effect to the proposed amendments. Upon acceptance for exchange by Appleton of the tendered old notes, the supplemental indentures giving effect to the proposed amendments became operative with respect to each of the indentures governing the old notes.

Broadpoint.Gleacher acted as dealer manager in connection with the offers.

The new notes have not been and will not be registered under the Securities Act or any state securities laws, may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements, and therefore are subject to substantial restrictions on transfer.

This press release is neither an offer to sell nor the solicitation of an offer to buy any security. The exchange offers and consent solicitations were made only to qualified institutional buyers and accredited investors inside the United States and to certain non-U.S. investors located outside the United States that completed and returned a related letter of representations.