KapStone Paper and Packaging Corporation Raises $85 Million From the Exercise of Expiring Warrants
18 Agosto 2009 - 10:01PM
PR Newswire (US)
NORTHBROOK, Ill., Aug. 18 /PRNewswire/ -- KapStone Paper and
Packaging Corporation (NASDAQ:KPPC) today announced that it will
receive $85.2 million from the exercise of 17 million warrants
between August 4, 2009 and August 17, 2009. Each warrant holder who
exercised their warrant and paid $5.00 will receive one share of
KapStone Paper and Packaging Corporation common stock. The new
shares will bring the total basic shares outstanding to 45.4
million. The unexercised warrants which traded under the ticker
symbol "KPPCW" on the NASDAQ exchange expired yesterday, August 17,
2009 at 4:00 PM EDT. The warrant holders' brokers have until 4:00
PM EDT on August 20, 2009 to complete the exercise transactions
with the transfer agent, American Stock Transfer. The Company
intends to use the proceeds from the exercise of the warrants to
pay down its term loans A and B. Including this payment, KapStone's
outstanding debt will be reduced to $250 million, down $222
million, or 47%, since July 1, 2008. About the Company
Headquartered in Northbrook, IL, KapStone Paper and Packaging
Corporation is a leading North American producer of unbleached
kraft paper products and linerboard. The Company is the parent
company of KapStone Kraft Paper Corporation which includes paper
mills in Roanoke Rapids, NC and North Charleston, SC, a lumber mill
in Summerville, SC, and five chipping mills in South Carolina. The
business employs approximately 1,550 people. Forward-Looking
Statements Statements in this news release that are not historical
are forward-looking statements within the meaning of the Private
Securities Litigation Act of 1995. Forward-looking statements can
often be identified by words such as "may," "will," "should,"
"would," "expect," "project," "anticipate," "intend," "plan,"
"believe," "estimate," "potential," "outlook," or "continue," the
negative of these terms or other similar expressions. These
statements reflect management's current views and are subject to
risks, uncertainties and assumptions, many of which are beyond the
Company's control that could cause actual results to differ
materially from those express or implied in these statements.
Factors that could cause or contribute to such differences include,
but are not limited to, the failure of exercised warrants to be
accompanied by the requisite payment. Other factors that could
cause or contribute to actual results differing materially from
such forward-looking statements are discussed in greater detail in
the Company's Securities and Exchange filings. We undertake no
obligation to make any revision to the forward-looking statements
contained in this press release or to update them to reflect events
or circumstances occurring after the date of this press release.
DATASOURCE: KapStone Paper and Packaging Corporation CONTACT:
Andrea K. Tarbox, Vice President and Chief Financial Officer of
KapStone Paper and Packaging Corporation, +1-847-239-8812 Web Site:
http://www.kapstonepaper.com/
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