PaperWorks Industries, Inc. Pays Portion of Term Loan

Company performance is strong moving into 2019

BALA CYNWYD, Pa.–(BUSINESS WIRE)–lt;a href=”https://twitter.com/hashtag/finance?src=hash” target=”_blank”gt;#financelt;/agt;–Less than a year after the successful financial restructuring of its
debt and equity, PaperWorks
Industries, Inc.
(“PaperWorks Industries” or the “Company”) has
pre-paid a significant portion of its term loan incurred in February
2018, in the amount of $18.8 million principal amount or 16.5%. In
solidifying this transaction, the Company continues to focus on growth
and strategic opportunities, as has been previously stated.

Additionally, PaperWorks Industries has provided notice to noteholders
under the indenture governing its Senior Secured Notes due 2019 (“the
notes”) that the company will be redeeming $4.4 million in notes on
March 4, 2019. This redemption represents all notes outstanding.

“The restructuring and the continued strengthening of our business has
enabled us to reduce our outstanding debt and set the stage for 2019,”
said C. Anderson “Andy” Bolton, President and Chief Executive Officer of
the Company.

PaperWorks Industries continues taking strong steps to further increase
liquidity and maximize value for stakeholders.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains “forward-looking statements” within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended.
Forward-looking statements represent management’s current expectations
and are based upon information available to the Company at the time of
this press release. Statements in this press release that are not
historical or current facts are “forward-looking statements.” Such
forward-looking statements include statements using words such as
“anticipate,” “expect,” “believe,” “continue,” “will,” “may,”
“estimate,” “assume,” “presume,” “pursue,” “outlook,” “plan,” “goal,”
“milestone” and similar expressions. Such statements are subject to a
number of risks, uncertainties and assumptions that may cause actual
results, developments, or achievements to differ materially from those
projected or implied in these statements including, but not limited to,
potential limitations on the Company’s ability to maintain contracts and
other critical business relationships; risks associated with general
economic and business conditions; requirements for adequate liquidity to
fund its operations in the future, including obtaining sufficient
financing on acceptable terms; other matters related to its
indebtedness; and the risk factors and known trends and uncertainties
described in the Company’s most recent periodic reports provided to
Noteholders.

Accordingly, readers should not place undue reliance on forward-looking
statements. The Company does not intend to publicly update any
forward-looking statements, whether as a result of new information,
future events, or otherwise, except as may be required under applicable
securities laws.

About PaperWorks Industries, Inc.

PaperWorks Industries is a leading, integrated North American
full-service provider of recycled paperboard and specialized folding
cartons for packaging applications. The company specializes in providing
folding carton solutions for a wide variety of market sectors including
food, beverage, personal care, pharmaceuticals, nutraceuticals and
medical devices and is also known for its state-of-the art, extended
color gamut printing capability which creates shelf-differentiating
graphics.

PaperWorks has invested more than $47 million over the past three years
to upgrade its paperboard mills and folding carton converting plants and
is committed to the highest sustainable forestry and procurement
standards. Product certifications include the Forest Stewardship Council
(FSC) and 100% Recycled Paperboard Alliance (RPA100). For more
information, please visit: www.paperworksindustries.com.

Contacts

Gabriela Goodman
PaperWorks Industries
+1 (215) 984-7000
[email protected]

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