Norbord prices offering of US$240M in aggregate principal amount of senior secured notes due Dec. 1, 2020
November 19, 2013
– Note: Financial references in US dollars unless otherwise indicated.
Norbord Inc. (TSX: NBD, NBD.WT) today announced that it has priced its offering of US$240 million in aggregate principal amount of senior secured notes (the Notes). The Notes will be due December 1, 2020 and will bear interest at an annual rate of 5.375%. The Company expects to close the offering of the Notes on November 26, 2013, subject to the satisfaction of customary closing conditions.
As previously announced, the Notes will rank pari passu with the Company's existing senior secured notes due 2017 and committed revolving bank lines. The Notes were offered by a syndicate of initial purchasers by way of a private placement under applicable securities laws.
Norbord intends to use the net proceeds from this offering to redeem its existing US$240 million of 6.25% senior notes due 2015 and 6.25% senior secured notes due 2015.
The Notes will not be qualified for distribution to the public under the securities laws of any province or territory of Canada and may not be offered or sold in Canada, directly or indirectly, other than pursuant to applicable private placement exemptions. The Notes have not and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of such Act. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the Notes in any jurisdiction.
Norbord Inc. is an international producer of wood-based panels with assets of $1 billion, employing approximately 1,900 people at 13 plant locations in the United States, Europe and Canada. Norbord is one of the world's largest producers of oriented strand board (OSB). In addition to OSB, Norbord manufactures particleboard, medium density fibreboard (MDF) and related value-added products. Norbord is a publicly traded company listed on the Toronto Stock Exchange under the symbols NBD and NBD.WT.