Spokane, Washington, USA, 28 July 2011 -- (BUSINESS WIRE) -- Clearwater Paper Corporation (NYSE:CLW) today announced that its board of directors has declared a 2-for-1 split of its common stock. The split will be effected in the form of a stock dividend payable on 26 August 2011, to shareholders of record on 12 August 2011. Shareholders will receive one additional share for each share of common stock held on the record date.
As of today, approximately 11,519,260 shares of the company's common stock are outstanding. Immediately following the distribution of the stock dividend, approximately 23,038,520 shares of the company's common stock will be outstanding.
"The board's action conveys its confidence in the long-term prospects for Clearwater Paper and is a recognition of the significant appreciation in the company's stock price since our spinoff," said Gordon L. Jones, chairman, president and chief executive officer. "Additionally, we hope the stock split will improve the company's stock liquidity."
The board also has authorized the repurchase of up to USD 30 million of the company's common stock from time to time. Under the stock repurchase program, Clearwater Paper may repurchase shares in the open market or as otherwise may be determined by management, subject to market conditions, business opportunities, and other factors.
"We expect to use the stock repurchase program to help offset dilution from the issuance of shares under the company's equity incentive plan and to return value to our stockholders. Our strong balance sheet gives us the flexibility to continue to execute our growth strategies while we implement the stock repurchase program," said Jones.
The company may enter into Rule 10b5-1 plans to facilitate repurchases under the stock repurchase program. The company has no obligation to repurchase shares under this program and may suspend or terminate the program at any time. The company intends to finance any repurchases with cash on hand.
Clearwater Paper manufactures quality consumer tissue, away-from-home tissue, parent roll tissue, machine glazed tissue, bleached paperboard, pulp, and wood products at 15 manufacturing locations in the United States and Canada. The company is a premier supplier of private label tissue to major retailers and wholesale distributors, which include grocery, drug, mass merchants, and discount stores. The company also produces bleached paperboard used by printers and packaging converters. Clearwater Paper's more than 4000 employees build shareholder value by developing strong customer partnerships through quality and service.