KP Tissue Inc.

KP Tissue Inc.

August 31, 2015 14:00 ET

Kruger Products Announces Plan to Redeem 8% Senior Unsecured Notes

MISSISSAUGA, ONTARIO--(Marketwired - Aug. 31, 2015) -


KP Tissue Inc. ("KPT") (TSX:KPT) announced today that Kruger Products L.P. ("KPLP") plans to redeem its outstanding $175 million principal amount of 8% senior unsecured notes due August 9, 2018 (the "Notes"). KPLP has entered into a commitment letter with National Bank of Canada to increase its existing credit facility from $125 million to $300 million which increase will be used to fund the redemption of the Notes. The redemption is conditional upon the closing of the refinancing.

"The refinancing will enable us to reduce our interest expense by approximately $9 million annually, and also improves our cash flow next year as we continue to execute on our strategic initiatives," said Mario Gosselin, CEO of KPT and KPLP.

KPLP will deliver today a redemption notice to holders of the Notes. The redemption date will be the business day following the closing of the refinancing transaction, which is expected to be September 30, 2015, and, in accordance with the terms of the Indenture for the Notes, will not be less than 30 days or more than 60 days following the giving of the redemption notice. In accordance with the indenture for the Notes, the redemption price is 104% of the principal amount of the Notes, and holders will also be entitled to receive accrued and unpaid interest on the Notes to but excluding the redemption date.

About KP Tissue Inc.

KP Tissue Inc. (KPT) was created to acquire, and its business is limited to holding, a limited partnership interest in KPLP. For more information visit

About Kruger Products L.P.

KPLP is Canada's leading manufacturer of quality tissue products for household, industrial and commercial use. KPLP serves the Canadian consumer market with such well-known brands as Cashmere®, Purex®, SpongeTowels®, Scotties® and White Swan®. In the U.S., KPLP 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. KPLP has approximately 2,500 employees across North America and operates five FSC® CoC- certified mills (FSC® C104904), four of which are located in Canada and one in the US. For more information visit

Forward-Looking Statements

Certain statements in this press release about KPLP's current and future plans, expectations and intentions, results, levels of activity, performance, goals or achievements or any other future events or developments constitute forward-looking statements. The words "may", "will", "would", "should", "could", "expects", "plans", "intends", "trends", "indications", "anticipates", "believes", "estimates", "predicts", "likely" or "potential" or the negative or other variations of these words or other comparable words or phrases, are intended to identify forward-looking statements. The forward-looking information is based on certain key expectations and assumptions made by KPT. Although KPT believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information since no assurance can be given that such expectations and assumptions will prove to be correct.

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