Fraser Papers Inc.

Fraser Papers Inc.

March 17, 2005 10:57 ET

Fraser Papers Inc. Announces $150 Million Senior Notes Issue


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: FRASER PAPERS INC.

TSX SYMBOL: FPS

MARCH 17, 2005 - 10:57 ET

Fraser Papers Inc. Announces $150 Million Senior Notes
Issue

TORONTO, ONTARIO--(CCNMatthews - March 17, 2005) - NOT FOR DISTRIBUTION
TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED
STATES

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

Fraser Papers Inc. (TSX:FPS) today announced that it has issued in a
private placement US$150 million of 8.75% senior unsecured notes
maturing March 15, 2015.

Fraser Papers intends to use a portion of the net proceeds of the issue
to repay amounts outstanding to an affiliate of Brascan Corporation
under a revolving term loan and to purchase certain assets used in
Fraser Papers' facilities and in its recently sold Park Falls operations
which have operating lease obligations that are currently guaranteed by
Norbord Inc. The remainder of the net proceeds will be used for general
corporate purposes.

This news release does not constitute an offer of the notes for sale in
any jurisdiction. The notes have not been and will not be registered
under the U.S. Securities Act of 1933, as amended, and may not be
offered or sold in the United States absent registration under that Act
or an applicable exemption from registration requirements of that Act.

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.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Fraser Papers Inc.
    Ben Vaughan
    Senior Vice President Finance and Corporate Development
    (416) 359-8623
    vaughanb@fraserpapers.com