MONTREAL, Oct. 1, 2014 /CNW Telbec/ - Tembec Inc. ("Tembec") announced
today that its wholly-owned subsidiary, Tembec Industries Inc. (the
"Company") successfully completed its previously announced private
offering of US$375 million in aggregate principal amount of 9% Senior
Secured Notes due 2019 (the "Notes").
The proceeds from the offering will be used to (i) purchase and redeem
all of the Company's existing 11.25% senior secured notes due 2018 (the
"Existing Notes"), (ii) repay a portion of the borrowings outstanding
under the Company's asset-based revolving credit facility, and (iii)
pay fees and expenses incurred in connection with these refinancing
transactions.
The Notes were sold in a private offering in the United States only to
qualified institutional buyers in reliance on Rule 144A under the
Securities Act of 1933, as amended (the "Securities Act"), and to
certain non-U.S. persons in transactions outside the United States in
reliance on Regulation S under the Securities Act, including in certain
provinces of Canada on a private placement basis to accredited
investors.
This press release is for informational purposes only and does not
constitute an offer to buy or the solicitation of an offer to sell or
buy any securities. The Notes have not been and will not be qualified
for sale to the public under applicable Canadian securities laws and,
accordingly, any offer and sale of the Notes in Canada will be made on
a basis that is exempt from the prospectus requirement of such
securities laws. The Notes have not been and will not be registered
under the Securities Act or the securities laws of any other
jurisdiction and may not be offered or sold in the United States absent
registration or an applicable exemption from the registration
requirements of the Securities Act and state securities laws.
About Tembec
Tembec is a manufacturer of forest products - lumber, paper, pulp and
specialty cellulose - and a global leader in sustainable forest
management practices. Principal operations are in Canada and France.
Tembec has approximately 3,500 employees and annual sales of
approximately $1.6 billion. Tembec is listed on the Toronto Stock
Exchange (TMB).
Forward-Looking Statements
This press release includes "forward-looking statements" within the
meaning of securities laws. Such statements may involve, but are not
limited to, statements regarding the Company's intention to redeem any
Existing Notes and related matters. Forward-looking statements also
include statements relating, without limitation, to Tembec's or its
management's objectives, projections, estimates, expectations or
predictions of the future and can be identified by words such as "may",
"will", "could", "anticipate", "estimate", "expect", "project",
"intend" and "plan", the negative or variations thereof, and
expressions of similar nature. These statements are based on certain
assumptions and analyses made by Tembec in light of its experience and
its perception of future developments. These forward-looking statements
speak only as of the date stated or otherwise, as of the date of this
press release, and, except as required by law, Tembec does not
undertake any obligation to update or revise publicly any
forward-looking statements, whether as a result of new information,
future events or otherwise, even if experience or future events make it
clear that any expected results expressed or implied by these
forward-looking statements will not be realized. Although Tembec
believes that the expectations reflected in these forward-looking
statements are reasonable, these expectations may not prove to be
correct or Tembec may not achieve the financial results, savings or
other benefits anticipated in the forward-looking statements. These
forward-looking statements are necessarily estimates reflecting the
best judgment of Tembec's management and involve a number of known and
unknown risks and uncertainties, some of which may be beyond Tembec's
control, which could cause its actual results, financial
position, levels of activity, performance or achievements to differ
materially from those suggested by the forward-looking statements,
including, without limitation, those identified throughout Tembec's
public disclosure file available on the website maintained by the U.S.
Securities and Exchange Commission at http://www.sec.gov or on SEDAR at http://www.sedar.com.
SOURCE Tembec
<p> <b>Information:</b><br/> Michel Dumas<br/> Executive Vice President, Finance and Chief Financial Officer<br/> Tel: 819 627-4268<br/> <a href="mailto:michel.dumas@tembec.com">michel.dumas@tembec.com</a> </p> <p> Linda Coates<br/> Vice President, Human Resources and Corporate Affairs<br/> Tel.: 416 775-2819<br/> <a href="mailto:linda.coates@tembec.com">linda.coates@tembec.com</a> </p>