New Issue: Riverside Forest Products $150 million 10-year notes yield 7 7/8%

By Paul A. Harris

St. Louis, Feb. 17 - Riverside Forest Products Ltd. sold a quick-to-market $150 million issue of 10-year senior notes (B2/B+) Tuesday at par to yield 7 7/8%, market sources said.

Price talk was 7¾% to 8%.

Bear Stearns & Co. and Harris Nesbitt were joint bookrunners on the Rule 144A issue. HSBC was co-manager.

Proceeds will be used to repay existing debt and to finance the acquisition of Lignum Ltd.

The company is a Kelowna, B.C.-based wood products manufacturer.

Issuer:	Riverside Forest Products Ltd.
Amount:	$150 million
Maturity:	March 1, 2014
Security description:	Senior notes
Bookrunners:	Bear Stearns & Co., Harris Nesbitt
Co-manager:	HSBC
Coupon:	7 7/8%
Price:	Par
Yield:	7 7/8%
Spread:	385 basis points
Call features:	Callable after March 1, 2009 at 103.938, 102.625, 101.313, par on March 1, 2012 and thereafter
Equity clawback;	Until March 1, 2007 for 35% at 107.875
Pricing date:	Feb. 17
Settlement date:	Feb. 25
Ratings:	Moody's: B2
	Standard & Poor's: B+
Price talk:	7¾%-8%

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