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Clearwater Paper prices tender offer for Cellu Tissue's 11½% notes
By Angela McDaniels
Tacoma, Wash., Dec. 13 - Clearwater Paper Corp. determined the purchase price it will pay in the tender offer for Cellu Tissue Holdings, Inc.'s $234,484,000 of 11½% senior secured notes due 2014, according to a Clearwater news release.
The tender offer is being made in connection with Clearwater's plan to acquire Cellu Tissue for $12.00 per share in cash.
Holders will receive $1,160.71 per $1,000 principal amount of notes. This includes an early tender payment of $30.00 for each note tendered by the early tender date, which was 5 p.m. ET on Nov. 30. The company will also pay accrued interest up to but excluding the payment date.
The purchase price was set at 2 p.m. ET on Dec. 13 using the yield of the 0.875% Treasury due May 31, 2011 plus a fixed spread of 50 basis points. The reference yield was 0.197%.
As of 5 p.m. ET on Dec. 10, holders had tendered $234,366,000 principal amount, or 99.95%, of the notes.
The tender offer will expire at 11 a.m. ET on Dec. 27.
On Dec. 7, the company extended the early tender date from Nov. 19 and the expiration date from Dec. 7.
The notes are callable at 111.5 on June 1.
The tender offer began Nov. 9 and is conditioned on the satisfaction or waiver of some conditions, including that all conditions to the closing of the merger be satisfied. The merger is expected to close in the fourth quarter, subject to stockholder approval, regulatory clearances and other customary conditions.
The dealer manager is Bank of America Merrill Lynch (attn: debt advisory services at 980 388-9217 or 888 292-0070). The information agent is D.F. King & Co., Inc. (800 431-9643).
Clearwater is a Spokane, Wash.-based manufacturer of consumer tissue, bleached paperboard and wood products. Cellu Tissue is an Alpharetta, Ga.-based manufacturer of tissue products.
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