Mr. Francois Paroyan reports

KRUGER PRODUCTS CLOSES SENIOR UNSECURED NOTES FINANCING

KP Tissue Inc.'s Kruger Products Inc. (KPI) has closed its previously announced offering of senior unsecured notes. KPI issued $165-million principal amount of 6.250 per cent senior unsecured notes due Dec. 10, 2032, by way of private placement. Interest on the notes is payable semi-annually in arrears on June 10 and Dec. 10 of each year, commencing on June 10, 2026.

A portion of the net proceeds of the offering was used to finance the repayment in full of the borrowings outstanding under the senior credit facilities of Kruger Products SB Inc. (KPSB). KPI intends to use the balance of the net proceeds of the offering for general corporate purposes. In connection with the offering, KPI's syndicated credit agreement was amended and restated to, among other things, increase the facility amount from $230-million to $250-million, increase the accordion feature from $75-million to $100-million and add KPSB as a restricted credit party.

About KP Tissue Inc.

KPT was created to acquire, and its business is limited to holding an equity interest in KPI, which is accounted for as an investment on the equity basis. KPT currently holds a 12.1-per-cent interest in KPI.

About Kruger Products Inc.

KPI is Canada's leading manufacturer of quality tissue products for household, industrial and commercial use. KPI serves the Canadian consumer market with such well-known brands as Cashmere, Purex, SpongeTowels, Scotties, White Swan and Bonterra. In the United States, KPI manufactures the White Cloud brand, as well as many private label products. The away-from-home division manufactures and distributes high-quality, cost-effective product solutions to a wide range of commercial and public entities. KPI has approximately 3,000 employees and operates 10 FSC COC-certified (FSC C-104904) production facilities in North America.

We seek Safe Harbor.