Nip Impressions logo
Thu, Mar 28, 2024 08:28
Visitor
Home
Click here for Pulp & Paper Radio International
Subscription Central
Must reads for pulp and paper industry professionals
Search
My Profile
Login
Logout
Management Side
Catalyst Paper completes recapitalization and privatization

RICHMOND, British Columbia -- Catalyst Paper Corporation announced that the recapitalization and privatization of the Company have been implemented and are now effective.

Pursuant to the recapitalization, Catalyst's outstanding 11% PIK Toggle Senior Secured Notes have been exchanged into each holder of Notes' pro rata share of a new $141,924,958 secured term loan and pro rata share of new common shares of Catalyst (the "Common Shares") representing 95% of the issued and outstanding Common Shares of Catalyst after the Recapitalization.

In addition, pursuant to the privatization transaction, all Common Shares outstanding immediately prior to the Recapitalization, other than the Common shares held by certain supporting parties, were repurchased for cancellation by Catalyst for cash consideration equal to C$0.50 per Common Share.

Concurrently with the recapitalization, the maturity dates of the existing revolving asset-based loan facility and the existing term loan facility of the Company were extended until July 31, 2020.

The successful completion of the recapitalization improves the Company's financial strength and reduces its financing risk by extinguishing approximately $125 million of the principal amount of the Company's debt without adversely impacting any of Catalyst's trade vendors and other suppliers.

*****

Take our annual reader survey here


Printer-friendly format

 





Powered by Bondware
News Publishing Software

The browser you are using is outdated!

You may not be getting all you can out of your browsing experience
and may be open to security risks!

Consider upgrading to the latest version of your browser or choose on below: