KP Tissue Announces Senior Unsecured Notes Financing and Intention to Redeem 6.00% Notes Due April 2025

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MISSISSAUGA, Ontario, Oct. 25, 2024 (GLOBE NEWSWIRE) -- KP Tissue Inc. (KPT) (TSX:KPT) announced today that Kruger Products Inc. ("KPI") has, pursuant to an underwriting agreement entered into today, agreed to issue and sell CDN $135 million principal amount of 6.625% Senior Unsecured Notes (the "Notes") due November 1, 2031 by way of private placement (the "Offering"). Interest on the Notes is payable semi-annually in arrears on May 1 and November 1 of each year, commencing on May 1, 2025.

Scotia Capital Inc., National Bank Financial Inc., CIBC Capital Markets Inc. and TD Securities Inc. are acting as joint book-running managers for the Offering. The Offering is expected to close on November 1, 2024, subject to customary closing conditions. KPI intends to use the net proceeds of the Offering to redeem all of KPI's outstanding 6.00% senior unsecured notes due April 24, 2025 (the "2025 Notes") and for general corporate purposes. KPI intends to deliver today a notice of redemption of the 2025 Notes with a redemption date of November 12, 2024 subject to the closing of the Offering prior to that date.

The Notes will be unsecured obligations of KPI and unconditionally guaranteed, jointly and severally, by certain subsidiaries of KPI, being the same guarantors as under KPI's syndicated credit facility. The Notes will rank senior in right of payment to all existing and future subordinated indebtedness of KPI and equal in right of payment to all indebtedness of KPI that is not subordinated in right of payment to the Notes other than any indebtedness that ranks senior to the Notes by operation of law.

The offer and sale of the Notes have not been and will not ...