Ainsworth Lumber to sell $50 million to $75 million six-year first-lien notes via Barclays Capital

By Paul A. Harris

St. Louis, Feb. 15 - Ainsworth Lumber Co. Ltd. is expected to price a $50 million to $75 million offering of six-year senior secured first-lien notes late in the week of Feb. 25, according to an informed source.

Barclays Capital has the books for the offering, which is being marketed without an investor roadshow.

The Rule 144A for life and Regulation S notes will come with three years of call protection and a three-year 35% equity clawback.

Proceeds will be used for working capital and general corporate purposes.

Ainsworth brings the new notes to market concurrent with an exchange offer for $153.5 million of senior floating-rate notes due 2010, $275 million of 7¼% senior notes due 2012, $75 million senior floating-rate notes due 2013, $210 million 6¾% senior notes due 2014 and $110 million 6¾% senior notes due 2014.

The new notes are backstopped by certain holders of the existing notes in return for warrants to purchase up to 7,887,998 of the company's common shares, representing about 35% of the currently outstanding shares.

Ainsworth Lumber is a Vancouver, B.C.-based manufacturer of engineered wood products including oriented strand board and specialty overlaid plywood.

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