Long Buckeye Technologies BKI 8.5 2013

• Buckeye manufactures cellulose based specialty products made of cotton
  and wood with 68% specialty fibers and 32% nonwoven materials

• small 750-800MM player in 7bln global market with leading positions
  in niches

• geograpic sales distribution is 42% North America, 37% Europe, 11%
  Asia, 4 % South America
• revenues diversified by product and geography
• 75% produced in US

• stable nature of non-woven business segment (30%)

• no acquisitions since 2000, IPO in 95 after Madison Dearborn
  sponsored MBO in 93

• small asset sale in 04

• no dividends / share repurchases

• negative revenue and earnings growth during last 3 quarters related to consumer
  discretionary impact on its business (TV, automotive, customized paper)

• constant annual CAPEX history (42-56MM range)

• stable working capital range

• constant debt reduction from 522MM in 06 to 327MM

• operating and free cash flow strong compared to total debt

• covenants: leverage 4x, interest covenant 2x (since June 09)

• no pension liability and no significant operating leases

• used revolver to repay 2010 subordinated bonds

• good cash flow and debt reduction history

• John B. Crowe, chairman and CEO confirmed on September 15th, 2009
  at the UBS Global Paper & Forest Products Conference company continues to focus
  on driving shareholder value through reduction in debt

• revenues likely to decline somewhat further but debt reduction capacity
  should not dramatically weaken its credit metrics

• liquidity will be adequate based on stable cash flow and WC

• average to conservative event risk (buy out not too likely)

Cap structure:

1. priority trade claims (20-30MM)
2. 200MM revolver due 2012
3. 200MM bond with small amounts of remaining trade claims and
4. lease rejection claims