KP Tissue Inc. announced pricing of initial public offering
Dec 06, 2012. KP Tissue Inc. has entered into an underwriting agreement for the initial public offering of 8 million common shares of the Corporation at a price of $17.50 per share, for total gross proceeds of approximately $140 million. The proceeds will be used by the Corporation 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.
Dec 06, 2012. /Lesprom Network/. KP Tissue Inc. has entered into an underwriting agreement for the initial public offering of 8 million common shares of the Corporation at a price of $17.50 per share, for total gross proceeds of approximately $140 million (the "Offering"). The proceeds will be used by the Corporation 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 a press release received by Lesprom Network.
The Offering is being 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. (together, the "Underwriters").
The Underwriters have also been granted an over-allotment option to purchase from the Corporation up to an additional 15% of the number of common shares issued under the Offering. 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 Toronto Stock Exchange ("TSX") has conditionally approved the listing of the Corporation's common shares, subject to fulfilling the customary TSX requirements. The common shares of the Corporation are expected to commence trading on the TSX under the symbol "KPT" upon the closing of the Offering. The closing is scheduled for December 13, 2012, subject to customary closing conditions.
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 proposed initial public offering of its common shares.
Kruger Products L.P. is Canada's leading manufacturer of quality tissue products for household, industrial and commercial use.