Kruger to redeem all C$175 million of outstanding 8% notes due 2018

By Wendy Van Sickle

Columbus, Ohio, Aug. 31 – Kruger Products LP plans to redeem its C$175 million of outstanding 8% senior notes due Aug. 9, 2018, according to a press release.

The redemption price will be 104 plus accrued interest. The notes are expected to be redeemed the first business day after the closing of an increase in the company’s credit facility to C$300 million from C$125 million.

That transaction is expected to take place Sept. 30, and the notes’ redemption is conditional upon the refinancing.

The company said it entered into a commitment letter with National Bank of Canada for the C$175 million expansion, which will fund the redemption.

Kruger is a tissue products producer with brands that include Cashmere, Purex and Scotties. The company is a subsidiary of Montreal-based pulp and paper producer Kruger Inc.

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