Cellu Tissue gets required consents for 9¾% notes

By Jennifer Chiou

New York, June 5 - Cellu Tissue Holdings said it received the required consents from holders of 100% of its 9¾% senior secured notes due 2010.

The offer ended at 5 p.m. ET on June 2. The previous deadlines were 5 p.m. ET on June 1 and May 23.

On May 24, Cellu Tissue said it increased the consent payment to $40.00 from $25.00 per $1000 principal amount of notes.

The company solicited consents for proposed amendments to the notes indenture to waive the requirement that Cellu Tissue make an offer to purchase the notes as a result of a change of control.

The solicitation began on May 9.

The consent solicitation is part of the previously announced acquisition of Cellu Paper Holdings, Inc., the parent corporation of Cellu Tissue, by Weston Presidio through a merger of Cellu Paper with a company controlled by Weston Presidio.

The solicitation is conditioned upon the completion of the merger and consents from holders of at least 95% of the securities.

MacKenzie Partners, Inc. is the information agent (800 322-2885). J.P. Morgan Securities Inc. is the solicitation agent (212 270-7407).

The Hartford, Conn.-based company manufactures specialty tissues and machine-glazed paper products.

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