Dec 14, 2012. /Lesprom Network/. KP Tissue Inc. announced the closing of its initial public offering of 8 million common shares of the Corporation at a price of $17.50 per share resulting in gross proceeds of $140 million. The common shares are listed on the Toronto Stock Exchange under the symbol "KPT". The proceeds will be used to subscribe for 8 million units of Kruger Products L.P. which will provide KP Tissue Inc. with a 15.7% interest in Kruger Products L.P., as the company said in the press release received by Lesprom Network The underwriters have also been granted an over-allotment option, exercisable within 30 days from the date hereof, to purchase up to an additional 1.2 million common shares from the Corporation. If the over-allotment option is exercised, the Corporation will use the proceeds from the sale of these additional shares to subscribe for additional units of Kruger Products L.P. which will result in KP Tissue Inc. having up to a 17.6% interest in Kruger Products L.P. The remaining 84.3% interest in Kruger Products L.P. (or 82.4% if the over-allotment option is exercised in full) is held by Kruger Products 2010 L.P. ("Kruger 2010"), a wholly owned subsidiary of Kruger Inc. In connection with the offering, Kruger 2010, Kruger Products L.P. and the Corporation entered into an Exchange Agreement under which Kruger 2010 may exchange at any time its units of Kruger Products L.P. for common shares of the Corporation on a one-for-one basis, subject to adjustment in accordance with the Exchange Agreement. As of December 13, 2012, Kruger 2010 is the registered holder of 43,009,999 units exchangeable for 43,009,999 common shares of the Corporation, which would represent approximately 84.3% of the Corporation's outstanding common shares. The offering was made through a syndicate of underwriters led by Scotia Capital Inc. as sole bookrunner, National Bank Financial Inc., RBC Dominion Securities Inc. and TD Securities Inc., and also includes CIBC World Markets Inc., Desjardins Securities Inc., HSBC Securities (Canada) Inc. and Canaccord Genuity Corp. KP Tissue Inc. is a corporation created with the sole purpose of acquiring an equity interest in Kruger Products L.P., initially, with the proceeds from the initial public offering of its common shares.