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STONE-CONSOLIDATED CORPORATION FILES FOR INITIAL PUBLIC OFFERING IN CANADA AND FOR SENIOR DEBT SECURITIES IN THE UNITED STATES

 MONTREAL, Aug. 27 /PRNewswire/ -- Stone-Consolidated Corporation, an indirect, wholly owned Canadian subsidiary of Stone Container Corporation, announced today that it has filed a preliminary prospectus in Canada for an initial public offering, which will represent a significant minority equity ownership in the Canadian company. Following the completion of the offering, Stone Container will continue to own the balance of the equity of Stone-Consolidated.
 Concurrent with the equity filing, Stone-Consolidated filed in the U.S. for an offering of $200 million (U.S.) Senior Secured and $125 million (U.S.) Senior Unsecured Notes.
 The net proceeds of the offerings will be used by Stone-Consolidated primarily to finance the acquisition of the newsprint and groundwood paper mills and the related Canadian lumber assets from Stone Container (Canada) Inc., a wholly owned subsidiary of Stone Container Corporation. The balance of the net proceeds will be retained by Stone-Consolidated for that company's general corporate purposes.
 The assets involved are the four Canadian newsprint and groundwood
paper mills at Ville de la Baie, Shawinigan, Trois-Rivi res and Grand-
M re in Quebec, and in addition the newsprint mill at Ellesmere Port in


the United Kingdom. Stone-Consolidated has also been named the exclusive sales agent for the newsprint production of Stone Container's mill in Snowflake, Arizona. The lumber assets include sawmills and timber harvesting rights at Chibougamau, Roberval, St. Fulgence, St. Ludger de Milot and Ville de la Baie, Quebec.
 Stone-Consolidated Ltd., the parent company of Stone-Consolidated Corporation, has been renamed Stone Container (Canada) Inc. and will retain its remaining assets, product lines and businesses, which are not impacted by this transaction.
 The equity offering will be underwritten by a syndicate led by ScotiaMcLeod Inc. and Burns Fry Limited in Canada and internationally by Salomon Brothers Inc., Scotia McLeod and Burns Fry. The U.S. debt issue will be led by Salomon Brothers.
 The Registration Statement and the Canadian Prospectus relating to the proposed public offerings of securities have not yet become effective. The securities registered thereby may not be sold, nor may offers to buy be accepted, prior to the time the Registration Statement and the Canadian Prospectus become effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall te? be any sales of such securities in any State or in any Province of Canada in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such State or any such Province of Canada.
 -0- 8/27/93
 /CONTACT: James Doughan, 514-394-2292, or 312-580-4627, president and chief executive of Stone-Consolidated Corp., or Arnold F. Brookstone, 312-580-4637, executive vice president-chief financial and planning officer, of Stone Container Corp./


CO: Stone-Consolidated Corporation ST: Quebec IN: PAP SU: OFR

LG -- NY014 -- 6532 08/27/93 10:06 EDT
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Publication:PR Newswire
Date:Aug 27, 1993
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