Fraser Papers Inc.

Fraser Papers Inc.

May 19, 2006 16:36 ET

Fraser Papers Commences Offer To Purchase Up To $66 Million Of Its 8.75% Senior Notes Due March 15, 2015

TORONTO, ONTARIO--(CCNMatthews - May 19, 2006) - Fraser Papers Inc. ("Fraser Papers") (TSX:FPS)

(All financial references are in US dollars unless otherwise noted)

Fraser Papers Inc. ("Fraser Papers") (TSX:FPS) announced today that it has commenced an offer to purchase up to $66.0 million in principal amount of its 8.75% Senior Notes due March 15, 2015 (the "Notes"). The purchase price will be 100% of the principal amount of the Notes plus accrued and unpaid interest up to the date of purchase pursuant to the offer.

Under the terms of the Indenture governing the Notes, Fraser Papers is required to make an offer to all holders to purchase up to $66.0 million in principal amount of Notes. This amount represents the excess proceeds resulting from sale of Fraser Papers' Maine timberlands in May, 2005 for net proceeds of $78 million.

The expiration time for the offer will be 5:00 p.m., EDT, on June 19, 2006, unless extended. In order to participate in the offer, holders must tender Notes prior to the expiration time.

Fraser Papers intends to tender $30 million principal amount of Notes it owns into the offer.

Any holder desiring to tender Notes should refer to the Offer to Purchase being circulated to holders to ensure valid tender procedures.

Fraser Papers is an integrated specialty paper company which produces a broad range of technical, and printing & writing papers. The company has operations in New Brunswick, Maine, New Hampshire and Quebec. Fraser Papers is listed on the Toronto Stock Exchange under the symbol: FPS. For more information, visit the Fraser Papers web site at

Note: This press release contains "forward-looking statements" that are based on certain assumptions and reflect the company's current expectations. The words "will," "should," "intends," "estimate" and other expressions which are predictions of or indicate future events and trends and which do not relate to historical matters identify forwardlooking statements. Reliance should not be placed on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the company to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from those set forth in the forward-looking statements include general economic conditions, interest rates, availability of equity and debt financing and other risks detailed from time to time in the documents filed by the company with the securities regulators in Canada. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Questions regarding the offer should be addressed to either the Depositary or Fraser Papers:

Contact Information

  • The Bank of New York (as depositary)
    Attention: Evangeline R. Gonzales
    101 Barclay Street - 7 East, New York, New York 10286
    (212) 815-3738
    Fraser Papers Inc.
    Attention: Chief Administrative Officer
    Suite 200, BCE Place, 181 Bay St.
    Toronto, Ontario, M5J 2T3
    (416) 359-8635