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.
Catalyst Paper manufactures diverse papers such as coated freesheet, coated one side (C1S), flexible and industrial packaging, coated and uncoated groundwood, newsprint, directory, as well as market pulp.
