Riverside Forest Products Limited announced today that it is redeeming US$52,500,000
Riverside Forest Products Limited (“Riverside”) announced today that it is redeeming US$52,500,000 aggregate principal amount of the 7-7/8% senior notes due 2014 (the “Notes”) pursuant to Section 3.07(a) of the Indenture dated as of February 25, 2004 (the “Indenture”) between Riverside and Wells Fargo Bank, National Association as Trustee. The redemption date is February 17, 2005. In accordance with the Indenture, the redemption price will be 107.875% of the principal amount of the Notes, plus accrued and unpaid interest to the date of redemption.
The redemption of the Notes is being funded with the net cash proceeds from the issuance of 1,850,000 common shares to a subsidiary of Tolko Industries Ltd. (“Tolko”) at a price of Cdn$40 per share for aggregate proceeds of Cdn$74,000,000, pursuant to an agreement entered into on February 3, 2005 and approved by Riverside’s Board of Directors, including all of its independent directors, on that date.
Riverside also announces that, effective on January 24, 2005, Tolko acquired all the remaining common shares of Riverside that it did not own pursuant to the compulsory acquisition provisions of the Business Corporations Act of British Columbia, with the result that Tolko now holds 100% of the common shares. As a result of that acquisition, Riverside’s common shares have been de-listed from the Toronto Stock Exchange and, pursuant to an order of the securities commissions in Canada, Riverside has ceased to be a reporting issuer in all Canadian jurisdictions.
Riverside will continue to meet its US reporting obligations under Section 4.03 of the Indenture with respect to annual financial information on Form 20-F and all quarterly financial information on Form 6-K that it would be required to provide under the laws of British Columbia as if its securities remained listed on the Toronto Stock Exchange whether or not they are so listed. Riverside expects to deliver and file its quarterly report for the first quarter ended December 31, 2004 not later than February 14, 2005
ContactTrevor Jahnig Riverside Forest Products Limited Chief Financial Officer