Catalyst Paper: successful completion of recapitalization
Catalyst Paper Corporation on the recapitalization (the "Recapitalization") and privatization (the "Privatization Transaction") of the Company have been implemented and are now effective.
Pursuant to the Recapitalization, Catalyst‘s outstanding 11% PIK Toggle Senior Secured Notes (the “Notes”) have been exchanged into each holder of Notes’ (i) pro rata share of a new US$141,924,958 secured term loan and (ii) pro rata share of new common shares of Catalyst (the “Common Shares”) representing 95% of the issued and outstanding Common Shares of Catalyst after the Recapitalization.
In addition, pursuant to the Privatization Transaction, all Common Shares outstanding immediately prior to the Recapitalization, other than the Common shares held by certain supporting parties, were repurchased for cancellation by Catalyst for cash consideration equal to C$0.50 per Common Share.
Concurrently with the Recapitalization, the maturity dates of the existing revolving asset-based loan facility and the existing term loan facility of the Company were extended until July 31, 2020.
The successful completion of the Recapitalization improves the Company’s financial strength and reduces its financing risk by extinguishing approximately US$125 million of the principal amount of the Company’s debt without adversely impacting any of Catalyst’s trade vendors and other suppliers.
The Common Shares of Catalyst were delisted from the Toronto Stock Exchange. Catalyst has also obtained an order from the British Columbia Securities Commission confirming that, upon the effectiveness of the Recapitalization and the Privatization Transaction, Catalyst ceased to be a reporting issuer in each of the Provinces of Canada under applicable Canadian securities laws.
Catalyst will file a certification under Form 15 with the U.S. Securities and Exchange Commission (the “SEC”) in order to voluntarily terminate the registration of its Common Shares and its reporting obligations under Section 13(a) and Section 15(d) of the U.S. Securities Exchange Act of 1934, as amended (the “Termination”). Upon filing the Form 15, the Company’s reporting obligations with the SEC, including its obligation to file reports on Form 20-F and to furnish reports on Form 6-K, will be immediately suspended. The Termination is expected to become effective no later than 90 days after the filing of the Form 15, if there are no objections from the SEC prior to that date.
