ORIX Finance Leads $110 Million Restructuring Financing for The Newark Group

ORIX-Led Financing Enables Manufacturer to Facilitate a Financial Reorganization and Return to Growth and Industry Leadership

DALLAS--(BUSINESS WIRE)--ORIX Finance Corp, an affiliate of Dallas-based ORIX USA Corporation, led a group of five lenders and arranged a $110 million credit facility to support The Newark Group (“Newark”) through its bankruptcy process. With the solid support of all relevant stakeholders, Newark filed for Chapter 11 bankruptcy protection on June 9, 2010, and now expects to exit bankruptcy in August with financing in place.

“To help America’s economic recovery, numerous corporations need financial restructuring and, for that to be possible, lenders must be able and willing to negotiate mutually acceptable solutions within complex capital structures.”

Although Newark’s business was operationally sound, its need to restructure debt followed a severe industry-wide decline in sales due to the general slowdown of the U.S. economy. Prior to filing, Newark reached an agreement for a consensual restructuring with the holders of its Senior Subordinated Notes.

To facilitate Newark’s restructuring process, ORIX worked with other lenders and stakeholders to provide the financing solution needed for a speedy reorganization process.

ORIX led and arranged a $110 million Debtor-In-Possession (DIP) and Exit Term Loan Facility. The DIP Term Loan repaid Newark’s pre-petition term loan and provided additional cash to increase Newark’s liquidity. The Exit Term Loan will provide term financing to support the company’s operations as it comes out of reorganization.

“When Newark needed help, our team was able to build consensus among a group of diverse creditors and assemble a financing package to help the Company restructure its balance sheet,” said Chris Smith, senior managing director of ORIX Finance. “The financing also provides capital to continue to grow the business and support all of its stakeholders, including customers, vendors and more than 2,500 employees.”

“ORIX intends to be a leading source of financing to help viable American companies return to normal operations as they recover from the economic downturn and credit crunch,” Smith added. “To help America’s economic recovery, numerous corporations need financial restructuring and, for that to be possible, lenders must be able and willing to negotiate mutually acceptable solutions within complex capital structures.”

About ORIX (www.ORIX.com)

ORIX Finance is a Dallas-based commercial investor with 60 professionals providing more than $2 billion of financing to middle market businesses throughout the U.S. and Canada.

Dallas-based ORIX USA Corporation, the parent of ORIX Finance, has investments totaling more than $5 billion in commercial finance, venture finance, commercial real estate, mortgage-backed securities, municipal obligations and commercial equipment leases, direct and indirect lending to mid-sized businesses, underwriting and syndication of multifamily housing bonds and related tax credits.

ORIX USA Corporation is the U.S. subsidiary of ORIX Corporation, a $83 billion, publicly owned Tokyo-based international financial services company established in 1964 and operating in 26 countries worldwide. ORIX Corp. is listed on the Tokyo (8591) and New York (NYSE:IX) stock exchanges.

About The Newark Group (www.NewarkGroup.com)

Founded in 1912, with headquarters in Cranford, NJ, Newark is a vertically-integrated, global producer of 100% recycled paperboard and paperboard, including core board, folding carton and industrial converting grades of paperboard. Newark operates significant manufacturing and marketing operations in North America and Europe.