Northbrook, Illinois, USA 18 August 2009 /PRNewswire/ -- KapStone Paper and Packaging Corporation (Nasdaq: KPPC) today announced that it will receive $85.2 million from the exercise of 17 million warrants between August 4, 2009 and August 17, 2009. Each warrant holder who exercised their warrant and paid $5.00 will receive one share of KapStone Paper and Packaging Corporation common stock. The new shares will bring the total basic shares outstanding to 45.4 million. The unexercised warrants which traded under the ticker symbol "KPPCW" on the NASDAQ exchange expired yesterday, August 17, 2009 at 4:00 PM EDT. The warrant holders' brokers have until 4:00 PM EDT on August 20, 2009 to complete the exercise transactions with the transfer agent, American Stock Transfer.
The Company intends to use the proceeds from the exercise of the warrants to pay down its term loans A and B. Including this payment, KapStone's outstanding debt will be reduced to $250 million, down $222 million, or 47%, since July 1, 2008.
About the Company
Headquartered in Northbrook, IL, KapStone Paper and Packaging Corporation is a leading North American producer of unbleached kraft paper products and linerboard. The Company is the parent company of KapStone Kraft Paper Corporation which includes paper mills in Roanoke Rapids, NC and North Charleston, SC, a lumber mill in Summerville, SC, and five chipping mills in South Carolina. The business employs approximately 1,550 people.
Statements in this news release that are not historical are forward-looking statements within the meaning of the Private Securities Litigation Act of 1995. Forward-looking statements can often be identified by words such as "may," "will," "should," "would," "expect," "project," "anticipate," "intend," "plan," "believe," "estimate," "potential," "outlook," or "continue," the negative of these terms or other similar expressions. These statements reflect management's current views and are subject to risks, uncertainties and assumptions, many of which are beyond the Company's control that could cause actual results to differ materially from those express or implied in these statements. Factors that could cause or contribute to such differences include, but are not limited to, the failure of exercised warrants to be accompanied by the requisite payment. Other factors that could cause or contribute to actual results differing materially from such forward-looking statements are discussed in greater detail in the Company's Securities and Exchange filings. We undertake no obligation to make any revision to the forward-looking statements contained in this press release or to update them to reflect events or circumstances occurring after the date of this press release.
SOURCE KapStone Paper and Packaging Corporation