Fraser Papers gets tenders for 99.93% of 8¾% notes

By Jennifer Chiou

New York, Aug. 1 - Fraser Papers Inc. obtained tenders from holders of 99.93% of its $84 million of 8¾% senior notes due March 2015.

The company paid par plus accrued interest, amounting to a purchase price of $70.7 million, including interest of $2.2 million.

Fraser Papers said it submitted $15.5 million of notes that it owns to the trustee for cancellation.

Under the terms of the note indenture, the company was required to make an offer to purchase the notes with proceeds from the sale of its New Brunswick timberlands to Acadian Timber Income Fund in January.

The offer expired at 5 p.m. ET on July 26. It began on June 1.

Settlement is slated for Aug. 3.

The Toronto-based integrated specialty paper company previously said it would fund the offer with availability under its credit facility and the monetization of up to all of its interest in Acadian.

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