U.S.-based coated paper products and microencapsulation company, Appvion Inc., is seeking to raise a $575 million secured credit facility to refinance existing indebtedness. We expect EBITDA improvement based largely on savings relating to a decision to close an unprofitable paper plant and outsource the company's paper supply. We are assigning a 'B+' rating and a '2' recovery rating to the proposed $375 million first-lien term loan and a 'CCC+' rating and '6' recovery rating to the proposed $200 million second-lien term loan. We are affirming the 'B' corporate credit rating on Appvion. We are revising the outlook on the 'B' corporate credit rating to positive from stable to reflect the potential for leverage to drop to less than 5x EBITDA
