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Canada : Ainsworth Announces Private Placement of Senior Secured Notes.

Ainsworth Lumber Co. Ltd. ( Ainsworth or the Company ) announced today its intention to issue US$350 million of senior secured notes through a private placement (the Debt Offering ). Concurrently with this offering, Ainsworth is launching a cash tender offer and consent solicitation (the Tender Offer ) for any and all of the Company s previously issued 11% senior notes due 2015 (the 2015 Notes ). The Tender Offer is conditioned on, among other limited conditions, the successful completion of the Debt Offering.

On October 22, 2012, Ainsworth announced its intention to proceed with a comprehensive refinancing plan involving a fully backstopped rights offering to raise gross proceeds of $175 million through the issue of common shares (the Rights Offering ), and the Debt Offering. The aggregate net proceeds received by Ainsworth from the Rights Offering and the Debt Offering will be used to fund the Tender Offer and to repay in full Ainsworth s outstanding Senior Secured Term Loan due June 2014.

The notes will be sold to qualified institutional buyers in reliance on Rule 144A, and outside the United States in compliance with Regulation S under the Securities Act of 1933, as amended. No securities referred to herein have been or will be registered under the United States 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. No securities referred to herein have been or will be qualified for distribution to the public under the securities law 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.

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Publication:Mena Report
Date:Nov 10, 2012
Words:293
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