/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES/Note: Financial references in US dollars unless otherwise indicated
TORONTO, Dec. 24, 2008 /CNW/ - Norbord Inc. (TSX:NBD) announced today
that it has completed the initial subscription under its previously announced
rights offering to shareholders of approximately CAD $240 million.
Under the offering, approximately 110 million units comprising
approximately 110 million common shares and approximately 55 million warrants
were issued to shareholders that elected to exercise rights, including
exercise of the basic subscription right by Brookfield Asset Management Inc.
(TSX and NYSE:BAM, Euronext:BAMA) or its affiliates (collectively,
"Brookfield"), Norbord Inc.'s largest shareholder. Gross proceeds from the
initial subscriptions totaled approximately CAD $96 million.
Norbord also announced today that, pursuant to the terms of its Standby
Purchase Agreement with Brookfield, the closing date for the completion of the
standby commitment has been set for January 6, 2009. Under the terms of the
Standby Purchase Agreement, Brookfield will purchase an additional
approximately 163 million common shares and 81 million warrants for gross
proceeds of approximately CAD $144 million. Upon satisfaction of the standby
commitment, Brookfield will hold a total of approximately 325 million common
shares or approximately 75% of the total number of Norbord's common shares
issued and outstanding and approximately 131 million warrants.
Upon completion of the standby commitment, Norbord expects a total of
approximately 432 million common shares and 136 million warrants of Norbord
Inc. will be issued and outstanding.
This news release does not constitute an offer to sell or the
solicitation of an offer to buy these securities. Securities may not be
offered or sold in the United States absent registration or an exemption from
registration under the United States Securities Act of 1933, as amended. The
Company does not intend to register any portion of this offering in the United
Norbord Inc. is an international producer of wood-based panels with
assets of $1.1 billion, employing approximately 2,700 people at 15 plant
locations in the United States, Europe and Canada. Norbord is one of the
world's largest producers of oriented strand board (OSB). In addition to OSB,
Norbord manufactures particleboard, medium density fibreboard (MDF), hardwood
plywood and related value-added products. Norbord is a publicly traded company
listed on the Toronto Stock Exchange under the symbol NBD.
This news release contains forward-looking statements, as defined in
applicable legislation. Often, but not always, words such as "will be," "would
be," "believe," "will," "expect," "expects," "expected," "forecast,"
"estimate," "estimates," "estimated," "likely," "may," "intends" and other
expressions which are predictions of or indicate future events, trends or
prospects and which do not relate to historical matters identify
forward-looking statements. Forward-looking statements involve known and
unknown risks, uncertainties and other factors which may cause the actual
results, performance or achievements of Norbord to be materially different
from any future results, performance or achievements expressed or implied by
the forward-looking statements.
Although Norbord believes it has a reasonable basis for making these
forward-looking statements, readers are cautioned not to place undue reliance
on such forward-looking information. By its nature, forward-looking
information involves numerous assumptions, inherent risks and uncertainties,
both general and specific, which contribute to the possibility that the
predictions, forecasts and other forward-looking statements will not occur.
Factors that could cause actual results to differ materially from those
contemplated or implied by forward-looking statements include: general
economic conditions; risks inherent with product concentration; effects of
competition and product pricing pressures; risks inherent with customer
dependence; effects of variations in the price and availability of
manufacturing inputs; risks inherent with a capital intensive industry; and
other risks and factors described from time to time in filings with Canadian
securities regulatory authorities.
Except as required by applicable laws, Norbord does not undertake to
update any forward-looking statements, whether as a result of new information,
future events or otherwise, or to publicly update or revise the above list of
factors affecting this information. See the "Caution Regarding Forward-Looking
Information" statement in the March 1, 2008 Annual Information Form and the
cautionary statement contained in the "Forward-Looking Statements" section of
the 2007 Management's Discussion and Analysis dated January 31, 2008.
For further information: Anita Veel, Director, Corporate & Regulatory
Affairs, (416) 643-8838, email@example.com