Taiga Building Products tenders for C$42.5 million 14% notes, plans unstapling of units

New York, April 3 - Taiga Building Products Ltd. said it has begun an asset sale tender offer to buy up to C$42.5 million of its 14% subordinated notes due 2020.

The Burnaby, B.C., distributor of building products will pay 105% of par per note plus accrued interest up to the date of acceptance. The notes have a C$5.32 principal amount so the offer price is $5.586 per note.

In order to participate in the offer, holders will have to separate their stapled units into notes and common shares.

Taiga is also soliciting consents to amend some provisions in the note indenture in order to separate all the stapled units into their constituent notes and shares. The company will pay a consent fee of C$3.00 per C$1,000 principal amount to holders who consent if sufficient consents are received.

Financing for the tender will come from Taiga's recently completed sale and leaseback offer.

"After reviewing various strategic options, the board of directors believes that the return of capital to unitholders at a premium represents the current best use of proceeds," said Kooi Ong Tong, chairman and chief executive officer, in a news release.

"Further, the consequent 'un-stapling' of the units into notes and shares will be in the best interest for the future growth of the company and for existing unitholders. Investors will be able to decide if they want fixed income, future growth or both."

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