Appleton is issuing $300 million first-lien senior secured notes due 2015, with proceeds expected to be used to repay outstanding amounts under its existing revolving credit facility due 2012 and secured term loan due 2013. We are assigning a 'B+' issue-level and a '2' recovery rating to the company's proposed first-lien senior secured notes, based on preliminary terms and conditions. We are affirming our 'B' corporate credit rating on the carbonless paper manufacturer. The stable rating outlook reflects our expectation that the company's credit measures will improve over the next several quarters to levels more consistent with the rating as demand increases due to an improving U.S. economy and the company benefits from cost–saving initiatives and new product development. On
