Toronto, Ontario, Canada, 29 January 2009 -- Marketwire -- Fraser Papers Inc. (TSX:FPS) has agreed to sell approximately 10,500 tons of specialty printing, packaging, and groundwood papers to Brookfield Paper LLC (BPLLC) for proceeds of approximately CAD 11.7 million, which will be used to repay amounts outstanding under the company's working capital facility.
In addition, the company has agreed to supply paper to BPLLC through 31 July 2009, at market prices. The net proceeds to Fraser Papers reflect a customary merchant's discount of 3.5% to end user selling prices. As part of the transaction, Fraser Papers will provide sales and administrative support to BPLLC, which is a wholly-owned subsidiary of Brookfield Asset Management Inc. (TSX:BAM)(NYSE:BAM)(AEX:BAMA), the company's majority shareholder.
Fraser Papers is an integrated specialty paper company that produces a broad range of specialty packaging and printing papers. The company has operations in New Brunswick and Quebec in Canada, and in Maine and New Hampshire in the United States. Fraser Papers is listed on the Toronto Stock Exchange under the symbol: FPS. For more information, visit www.fraserpapers.com