Spring Grove, Pa.-based Pixelle Specialty Solutions announced Tuesday it had secured significant funding that would help position the company for continued future growth.
The specialty paper company said the financing, which includes new capital investment and amendments to the company’s credit facilities, was a strategic transaction that will give it an injection of fresh capital to invest in its manufacturing capabilities and drive improved operational performance at it three paper mills.
“This financing is evidence of the confidence that our capital partners have in our business and its long-term outlook. With this new support, we are well-positioned to take advantage of several key initiatives we have underway to improve our cost structure and invest in our manufacturing capabilities,” Ross Bushnell, Pixelle’s president and CEO, said.
The company said 100 percent of its revolving credit and more than 97 percent of its first lien term loan lenders participated in the financing transaction, proving their support of the company. The move further reinforces the company’s liquidity position, officials said.
Additionally, Pixelle’s private equity sponsor has made incremental capital investment in the company, emphasizing Pixelle’s solid business fundamentals and long-term potential, officials said.
“Our operational performance in Q2 of 2024 has shown significant improvement and we are committed to identifying and implementing additional improvements to our business in an effort to be the most reliable manufacturer of specialty papers in North America, “ Bushnell said. “Our customers continue to support us with strong order volumes and a substantial backlog; in turn, we will continue to lean on the decades of tremendous experience of our leadership team in order to deliver value to all of our stakeholders including those customers as well as our capital partners, employees, suppliers and communities.”