Fraser Papers withdraws offer for Katahdin Paper
April 25, 2007 - Fraser Papers late yesterday said that, after discussions with its shareholders, it is withdrawing the proposal to acquire the Katahdin Paper Company from Brookfield Asset Management.
The company will instead use the money to repurchase debt
Fraser said it plans to make an offer to all holders of its 8.75% senior notes to purchase the remaining $84.0 million of notes outstanding, including $15.5 million that the company currently holds, at a price of 100% of the principal amount plus accrued interest to the settlement date, pursuant to the terms under the existing trust indenture.
"We are disappointed that we were unable to adequately communicate the attributes that this transaction would bring to Fraser and its shareholders," said Peter Gordon, Fraser's president.
"As a result, we will proceed with the redemption of our outstanding senior notes and continue to execute our focused strategy pursuing value-added products in niche market segments," he said.
Fraser Papers is an integrated specialty paper company which produces a broad range of specialty packaging and printing papers. The company has operations in New Brunswick, Maine, New Hampshire and Quebec.
SOURCE: Fraser Papers Inc.
See related story:
- Fraser Papers in deal to buy Katahdin Holdings (3/30)