Note: Financial references in US dollars unless otherwise indicated.
/NOT FOR DISTRIBUTION IN THE UNITED STATES/
TORONTO, June 4, 2012 /CNW/ - Norbord Inc. (TSX: NBD, NBD.WT) today
announced its intention, subject to market and other conditions, to
launch an offering of approximately US$240 million in aggregate
principal amount of senior notes (the Notes).
The proposed offering is expected to comprise two tranches. The first
tranche will consist of approximately US$165 million of senior secured
notes that will rank pari passu with the Company's existing senior secured notes due 2017 and committed
revolving bank lines. The second tranche will consist of approximately
US$75 million of senior unsecured notes.
The senior secured notes will be offered by a syndicate of underwriters
by way of a private placement under applicable securities laws. The
senior unsecured notes are expected to be placed directly with an
Norbord intends to use the net proceeds from this offering to refinance
its existing US$240 million 7.25% debentures due July 1, 2012.
The Notes will not be qualified for distribution to the public under the
securities laws of any province or territory of Canada and may not be
offered or sold in Canada, directly or indirectly, other than pursuant
to applicable private placement exemptions. The Notes have not and
will not be registered under the U.S. Securities Act of 1933, as
amended, and may not be offered or sold in the United States absent
registration or an applicable exemption from the registration
requirements of such Act. This press release shall not constitute an
offer to sell or the solicitation of an offer to buy the Notes in any
Norbord Inc. is an international producer of wood-based panels with
assets of $1 billion, employing approximately 2,000 people at 13 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) and related value-added products. Norbord is a
publicly traded company listed on the Toronto Stock Exchange under the
symbols NBD and NBD.WT.
This news release contains forward-looking statements, as defined in
applicable legislation, including statements related to our strategy,
projects, plans, future financial or operating performance and other
statements that express management's expectations or estimates of
future performance. Often, but not always, words such as "intention,"
"proposed," "expected," "will," "intends," and "will not" 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, 2012 Annual Information Form and the cautionary statement contained
in the "Forward-Looking Statements" section of the 2011 Management's
Discussion and Analysis dated January 26, 2012 and Q1 2012 Management's
Discussion and Analysis dated April 26, 2012.
SOURCE Norbord Inc.
For further information:
Manager, Corporate Affairs
Tel. (416) 365-0705