Montreal, Quebec, Canada, 16 February 2012 -- Tembec Inc. announced today that it intends to offer, through its wholly-owned subsidiary, Tembec Industries Inc., USD 50 million in aggregate principal amount of 11.25% senior secured notes due 2018 in a private offering to “qualified institutional buyers” as defined in Rule 144A under the U.S. Securities Act of 1933, as amended, and outside the United States in reliance on Regulation S under the Securities Act.
The notes are being offered as additional notes under the indenture dated as of 17 August 2010, pursuant to which the company has issued USD 255,000,000 aggregate principal amount of 11.25% senior secured notes due 2018 (the “existing notes”). The notes will be treated as a single series with and will have the same terms as the existing notes, except that the notes will have registration rights and will be subject to restrictions on transfer.
The proceeds from the offering are expected to be used for general corporate purposes, as additional liquidity to support Tembec’s capital expenditure initiatives, and to pay fees and expenses related to the offering.
Upon issuance, the notes will not be registered under the Securities Act or the securities laws of any other jurisdiction. In connection with the offering, the company will agree that following completion of the offering, it will file an exchange offer registration statement with the U.S. Securities and Exchange Commission with respect to an offer to exchange the notes and, under certain circumstances, a shelf registration statement with respect to resales of the notes. Until registered, the notes (i) may be offered only in transactions that are exempt from registration under the Securities Act or the securities laws of any other jurisdiction and will therefore be subject to substantial restrictions on transfer and (ii) will trade separately from the existing notes. After registration, the notes are expected to trade fungibly with the existing notes.
Tembec is a manufacturer of forest products – lumber, pulp, paper, and specialty cellulose – and a global leader in sustainable forest management practices. Principal operations are in Canada and France. Tembec has some 4000 employees and annual sales of approximately CAD 2 billion. Tembec is listed on the TSX (TMB). Additional information on Tembec is available on its website at www.tembec.com.