DGAP-News: FORTRESS PAPER ANNOUNCES CONVERTIBLE DEBENTURE FINANCING
(firmenpresse) - Fortress Paper Ltd. / Corporate Action
19.04.2010 11:39
Dissemination of a Corporate News, transmitted by
DGAP - a company of EquityStory AG.
The issuer / publisher is solely responsible for the content of this announcement.
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FORTRESS PAPER ANNOUNCES CONVERTIBLE DEBENTURE FINANCING
VANCOUVER, British Columbia, April 16, 2010 - Fortress Paper Ltd.
('Fortress Paper' or the 'Corporation') today announces, further to its
news release of March 18, 2010, the signing of a subscription agreement
(the 'Subscription Agreement') with Solidarity Fund QFL (the 'Fund')
providing for the subscription of an unsecured convertible debenture of
Fortress Paper (the 'Debenture') in the principal amount of $15 million
maturing five years following the date of its issuance and bearing interest
at a rate of 7% per annum. The Debenture will be convertible, in whole or
in part, at the option of the Fund into common shares of Fortress Paper at
any time after the date of its issuance at a conversion price equal to
$20.00.
The Debenture will be redeemable, in whole or in part, at the option of
Fortress Paper from the second anniversary date of its issuance, provided
that the volume weighted average trading price of Fortress' common shares
on the Toronto Stock Exchange (the 'TSX') is not less than $25.00.
The Debenture financing is part of the financing package being arranged by
Fortress Paper in connection with its plans to acquire and convert the
Thurso Mill in Québec into a high quality specialty cellulose mill and to
construct a new cogeneration facility as announced on March 18, 2010. The
closing of the Subscription Agreement is subject to various conditions,
including (i) the concurrent completion of a senior debt financing
providing for credit facilities in the amount of up to $100 million to be
used in connection with the Thurso Mill; (ii) the closing of the
acquisition of the Thurso Mill; and (iii) receipt of TSX approval for the
issuance by Fortress Paper of the Debenture.
The Ontario Superior Court of Justice (Commercial List) has approved the
sale of the Thurso Mill. The closing of the acquisition of the Thurso Mill
and Subscription Agreement is expected to occur on or about April 30, 2010.
About Fortress Paper
Fortress Paper is a leading international producer of security and other
specialty papers. Fortress Paper operates two paper mills, the Landqart
Mill located in Switzerland and the Dresden Mill located in Germany.
Fortress Paper's security papers include banknote, passport and visa papers
and its specialty papers include non-woven wallpaper base products, and
graphic and technical papers. As an extension of its securitypapers
business, the Landqart Mill has been actively developing and marketing
innovative paper-based security products.
For more information, please contact:
Chadwick Wasilenkoff
Fortress Paper Ltd.
604-904-2328
info(at)fortresspaper.com
www.fortresspaper.com
This news release contains certain forward-looking statements that reflect
the current views and/or expectations of Fortress Paper with respect to its
performance, business and future events, including statements relating to
the completion of the acquisition of the Thurso Mill and the outcome of the
Corporation's financing initiatives andits intention to convert the Thurso
Mill into a specialty cellulose (dissolving pulp) operation and its plans
to build a biomass based cogeneration plant. Forwardlooking statements are
based on the then-current expectations, beliefs, assumptions, estimates
and forecasts about the business and the industry and markets in which the
Corporation operates, including assumptions relating to the Corporation's
ability to complete the acquisition of the Thurso Mill; its ability to
complete the necessary financing to successfully implement its business
plan in respect of the Thurso Mill; and the expected effects of the
acquisition of the Thurso Mill on the business of the Corporation.
Forward-looking statements are not guarantees of future performance and
involve risks, uncertainties and assumptions which are difficult to
predict.
Investors are cautioned that all forward-looking statements involve risks
and uncertainties including, without limitation, that the Corporation will
not complete the acquisition of the Thurso Mill or its financing
initiatives; will not obtain the necessary financing to complete its
business plan in respect of the Thurso Mill; will be unable to implement
its business plan in respect of the Thurso Mill as planned or at all; and
those risks relating to changes in the market, potential downturns in
economic conditions, fluctuations in the price and supply of raw materials,
foreign exchange fluctuations, labour relations, regulatory requirements,
reputation, competition, dependence on major customers, and other risk
factors listed from time to time in the Corporation's public filings. These
risks, as well as others, could cause actual results and
events to vary significantly. Accordingly, readers should not place undue
reliance on forward-looking statements and information, which are qualified
in their entirety by this cautionary statement. Fortress Paper does not
undertake any obligations to release publicly any revisions for updating
any voluntary forward-looking statements, except as required by
applicable securities law.
Not for distribution to United States newswire services or for
dissemination in the United States.
19.04.2010 11:39 Ad hoc announcement, Financial News and Media Release distributed by DGAP. Medienarchiv atwww.dgap-medientreff.deandwww.dgap.de---------------------------------------------------------------------------
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Datum: 19.04.2010 - 05:39 Uhr
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