Fraser Papers plans $60 million equity rights offering to existing shareholders
Monday, December 03, 2007
November 30, 2007 - TORONTO - Fraser Papers Inc., a Toronto-based pulp and paper company with operations in Canada and the United States, says it has filed notice with Canadian securities regulators for a $60 million rights offering.
The company said Friday the offering will allow existing shareholders, including Toronto-based Brookfield Asset Management, to buy more common shares and help shore up the company's balance sheet.
Fraser stock was halted on the TSX pending news of the financing.
The forestry company, 46 per cent owned by Brookfield, said it will use the money raised to pay down debt.
"The proceeds from this offering will enable us to reduce debt and provide us with the opportunity to focus on completing the business initiatives which are currently underway to address the challenging conditions facing our company and our industry," said Peter Gordon, Fraser Papers' president and CEO.
"Brookfield's support for this transaction is significant and should be seen by our customers, suppliers and other stakeholders as a sign of their commitment to our business plans."
Under the offering, Fraser Papers' shareholders will get one right for each common share they hold.
Fraser Papers, which had more than 3,200 employees at the end of 2006, is an integrated specialty paper producer which manufactures specialty packaging and printing papers. The company has operations in New Brunswick, Maine, New Hampshire and Quebec.