Fortress Paper signs deal to raise C$40M in offering of convertible subordinated debentures to mature on Dec. 31, 2019, will use funds to support co-generation project at its Specialty Cellulose Mill, Lebel-sur-Quevillon Mill

Kendall Sinclair

Kendall Sinclair

Jun 20, 2012 – National Post

DON MILLS, Ontario , June 20, 2012 (press release) – Specialty pulp and paper company Fortress Paper Ltd. has signed a deal to raise $40-million in an offering of convertible unsecured subordinated debentures. The company said it plans to use the money to help pay for capital expenditures at its co-generation project at the Fortress Specialty Cellulose Mill and its Lebel-sur-Quevillon Mill. The underwriters have also been granted an over-allotment option for up to an additional $6-million in debentures for 30 days following closing to cover over-allotments. The debentures will mature on Dec. 31, 2019, and will accrue interest at the rate of 7% per year, payable on a semi-annual basis, starting Dec. 31, 2012. At the holder's option, the debentures may be converted into Fortress Paper shares at a conversion price of $31 per share. Fortress makes specialty papers used to make wallpaper and bank notes.

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