Norbord fixed price of The Notes offering
Published on : Monday, April 6, 2015
Norbord Inc. has announced the price of its offering of US$315 million in a aggregate principal amount of senior secured notes. The Notes will be due 2023 and will bear interest at an annual rate of 6.25 percent. The offer will expire on April 16.
As previously announced the Notes will rank pari passu with the Company’s existing Senior Secured Notes due 2017 and Senior Secured Notes due 2020 and committed revolving bank lines. The Notes were offered by a syndicate of initial purchasers by way of a private placement under applicable securities laws.
Norbord intends to use the net proceeds from this offering, along with cash on hand, to repurchase for cash all of the outstanding 7.5% Senior Secured Notes due 2017 issued by Ainsworth Lumber Co. Ltd. (the “Ainsworth 2017 Notes”) pursuant to a tender offer and consent solicitation and to redeem any remaining outstanding Ainsworth 2017 Notes following the tender offer.
The Notes will not be qualified for distribution to the public under the securities laws of any province or territory of Canada and may not be offered or sold in Canada, directly or indirectly, other than pursuant to applicable private placement exemptions. The Notes have not and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of such Act. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the Notes in any jurisdiction, or an offer to purchase, the solicitation of an offer to sell, or a notice to redeem any Ainsworth 2017 Notes.