Ainsworth Lumber issues talk on $450 million two-part note offering, to price Friday

By Paul A. Harris

St. Louis, Sept. 15 - Ainsworth Lumber Co. Ltd. issued price talk Wednesday on a $450 million two-part bond offering (B2/B+), according to market sources.

Pricing is expected on Friday.

A tranche of eight-year fixed-rate senior notes, which is non-callable for four years, is talked at 7¼% to 7½%.

Meanwhile a tranche of six-year floating-rate senior notes, which is non-callable for two years, is talked at three-month Libor plus 350 to 375 basis points.

Tranche sizes remain to be determined.

Deutsche Bank Securities and Goldman Sachs & Co. are joint bookrunners for the Rule 144A offering.

Proceeds along with cash on hand will be used to finance Ainsworth Lumber's $457.5 million acquisition of Potlatch Corp.'s oriented strand board manufacturing and related facilities.

Ainsworth Lumber is a Vancouver, B.C., forest products company.

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