v3.25.4
Debt
 12 Months Ended
Dec. 31, 2025
Debt Disclosure [Abstract]  
Debt

Note 11. Debt

Debt as of December 31, 2025 and December 31, 2024, was comprised of the following:

 

 

 

 

December 31,

 

 

 

Maturity

 

2025

 

 

2024

 

Senior notes (a)

 

 

 

 

 

 

 

 

12.875% senior notes

 

2028

 

$

400,000

 

 

$

400,000

 

5.125% senior notes

 

2029

 

 

875,000

 

 

 

875,000

 

 

 

 

 

 

 

 

 

 

Credit arrangements

 

 

 

 

 

 

 

 

€370.1 million German joint revolving credit facility (b)

 

2027

 

 

200,925

 

 

 

168,822

 

C$160.0 million Canadian joint revolving credit facility (c)

 

2027

 

 

94,758

 

 

 

347

 

€2.6 million demand loan (d)

 

 

 

 

—

 

 

 

—

 

C$20 million standby letters of credit facility (e)

 

2027

 

 

—

 

 

 

—

 

 

 

 

 

 

 

 

 

 

Finance lease liability

 

 

 

 

54,873

 

 

 

48,214

 

 

 

 

 

 

1,625,556

 

 

 

1,492,383

 

Less: unamortized senior note issuance costs

 

 

 

 

(6,748

)

 

 

(8,982

)

Less: finance lease liability due within one year

 

 

 

 

(13,664

)

 

 

(9,415

)

 

 

 

 

$

1,605,144

 

 

$

1,473,986

 

The maturities of the principal portion of debt as of December 31, 2025 were as follows:

 

 

Senior Notes and Credit Arrangements

 

 

Finance Leases

 

2026

 

$

—

 

 

$

15,272

 

2027

 

 

295,683

 

 

 

14,116

 

2028

 

 

400,000

 

 

 

11,956

 

2029

 

 

875,000

 

 

 

7,614

 

2030

 

 

—

 

 

 

4,015

 

Thereafter

 

 

—

 

 

 

5,508

 

 

 

 

1,570,683

 

 

 

58,481

 

Less imputed interest

 

 

—

 

 

 

(3,608

)

Total payments

 

$

1,570,683

 

 

$

54,873

 

Certain of the Company’s debt instruments were issued under agreements which, among other things, may limit its ability and the ability of its subsidiaries to make certain payments, including dividends. These limitations are subject to specific exceptions. As of December 31, 2025, the Company was in compliance with the terms of its debt agreements.

(a)
In October 2024, the Company completed a $200,000 add-on offering of the existing 12.875% senior notes which mature on October 1, 2028 (the “2028 Senior Notes”) at a 103.000% premium to their principal amount. The net proceeds of the offerings were $202,008 after deducting the underwriter's discount and offering expenses. The net proceeds and cash on hand were used to redeem $300,000 in principal amount of senior notes which were to mature in January 2026.

In September 2023, the Company issued $200,000 in aggregate principal amount of 2028 Senior Notes. The net proceeds from this issuance was $195,668 after deducting the underwriter’s discount and offering expenses.

The senior notes which mature on February 1, 2029 (the “2029 Senior Notes” and collectively with the 2028 Senior Notes, the “Senior Notes”) and the 2028 Senior Notes are general unsecured senior obligations of the Company. The Company may redeem all or a part of the Senior Notes upon not less than 10 days’ or more than 60 days’ notice at the redemption price plus accrued and unpaid interest to (but not including) the applicable redemption date.

The 2029 Senior Notes can be redeemed at 100.00% of their principal amount. The following table presents the redemption prices (expressed as percentages of principal amount) and the redemption periods of the 2028 Senior Notes:

 

2028 Senior Notes

12 Month Period Beginning

 

Percentage

October 1, 2025

 

106.438%

October 1, 2026

 

103.219%

October 1, 2027 and thereafter

 

100.000%

 

(b)
A €370.1 million joint revolving credit facility for the German mills that matures in September 2027. Borrowings under the facility are unsecured and bear interest at Euribor plus a variable margin ranging from 1.40% to 2.35% dependent on conditions including but not limited to a prescribed leverage ratio. The facility is sustainability linked whereby the interest rate margin is subject to upward or downward adjustments of up to 0.05% per annum if the Company achieves, or fails to achieve, certain specified sustainability targets. As of December 31, 2025, approximately €171.0 million ($200,925) of this facility was drawn and accruing interest at a rate of 3.310%, approximately €14.4 million ($16,958) was supporting bank guarantees and approximately €184.7 million ($217,014) was available.
(c)
A C$160.0 million joint revolving credit facility for the Celgar mill, Peace River mill and certain other Canadian subsidiaries that matures in January 2027. The facility is available by way of: (i) Canadian dollar denominated advances, which bear interest at a designated prime rate per annum; (ii) Canadian dollar denominated advances, which bear interest at the applicable Adjusted Term Canadian Overnight Repo Rate Average plus 1.20% to 1.45% per annum; (iii) dollar denominated base rate advances at the greater of the federal funds rate plus 0.50%, an Adjusted Term Secured Overnight Financing Rate (“SOFR”) for a one month tenor plus 1.00% and the bank’s applicable reference rate for dollar denominated loans; and (iv) dollar denominated SOFR advances, which bear interest at Adjusted Term SOFR plus 1.20% to 1.45% per annum. As of December 31, 2025, approximately C$129.9 million ($94,758) of this facility was drawn and accruing interest at a rate of 4.270%, approximately C$0.6 million ($470) was supporting letters of credit and approximately C$17.5 million ($12,753) was available.
(d)
A €2.6 million demand loan for Rosenthal that does not have a maturity date. Borrowings under this facility are unsecured and bear interest at the rate of the three-month Euribor plus 2.50%. As of December 31, 2025, approximately €2.6 million of this facility was supporting bank guarantees and approximately $nil was available.
(e)
In October 2025, the Company entered into a C$20.0 million revolving credit facility for the Celgar mill and Peace River mill that matures in August 2027. This facility is available through letters of credit denominated in Canadian dollars and dollars, which incur fees at the greater of 0.50% per annum of the face amount of the letter of credit or C$300. The facility and all letters of credit issued under the facility are guaranteed by Export Development Canada until August 2026. As of December 31, 2025, C$1.1 million ($800) of this facility was supporting letters of credit and approximately C$18.9 million ($13,792) was available.