Jan 2 2015
Catalyst Paper Corporation announced today that an important milestone has been achieved in the previously announced acquisition by Catalyst of the Biron paper mill in Wisconsin and the Rumford pulp and paper mill in Maine, USA from NewPage Corporation, NewPage Wisconsin System Inc. and Rumford Paper Company.
This step forward was made possible by today's announcement by the United States Department of Justice that it had filed a Proposed Final Judgment and a Hold Separate Stipulation and Order with the U.S. District Court for the District of Columbia, embodying a consent settlement in connection with the proposed acquisition by Verso Paper Corp. of NewPage Holdings Inc. (the "Verso Transaction"). Subject to the Verso Transaction being completed and certain other closing conditions being met, Catalyst will be able to proceed with the Acquisition and anticipates a closing date on or about January 7, 2015.
"This Acquisition enhances our long-term competitiveness and is expected to make Catalyst a stronger company more effectively positioned for the future," says Joe Nemeth, President and CEO. "With the addition of the Biron and Rumford mills, Catalyst will be able to offer its new and existing customers a more diversified and higher-value product suite, complemented by our commitment to quality service focused on understanding and meeting our customers' needs."
As previously disclosed, Catalyst anticipates that the $50.0 million increase in the maximum amount of credit available under Catalyst's asset-based credit facility and US$25.0 million (principal amount) offering (the "Offering") of additional PIK toggle senior secured notes will close concurrently with the Acquisition, subject to satisfaction of certain closing conditions, including the approval of the Toronto Stock Exchange ("TSX") in case of the Offering.
As described in more detail in Catalyst's November 28, 2014 news release, pursuant to TSX rules, closing of the Offering is subject to shareholder approval, excluding shares held by two insiders of Catalyst that would be eligible to acquire notes under the Offering. Catalyst has obtained written consents of shareholders sufficient to satisfy such TSX requirement.
Source: http://www.catalystpaper.com/