Date Closed

December 13, 2012

Lead Office

Montréal

Value

140.00 Million CAD

On December 13, 2012, KP Tissue Inc. completed its initial public offering of 8 million common shares at a price of C$17.50 per share resulting in gross proceeds of C$140 million (the “Offering”). The proceeds were used to subscribe for 8 million units of Kruger Products L.P. ("KPLP"), representing a 15.7% interest in Kruger Products.  Kruger Products is Canada’s leading manufacturer of quality tissue products for household, industrial and commercial use, including such well-known brands as Cashmere®, Purex®, SpongeTowels®, Scotties® and White Swan®. The remaining 83.3% interest in Kruger Products is held indirectly by Kruger Inc.

The transaction structure involved a series of agreements governing the relationship between KP Tissue, Kruger Products and Kruger, including an exchange agreement to allow Kruger to exchange its units in Kruger Products for common shares in KP Tissue.

The Offering was made through a syndicate of underwriters led by Scotia Capital Inc. as sole bookrunner, National Bank Financial Inc., RBC Dominion Securities Inc. and TD Securities Inc., and also included CIBC World Markets Inc., Desjardins Securities Inc., HSBC Securities (Canada) Inc. and Canaccord Genuity Corp. (the “Underwriters”).

The Underwriters were also granted an over-allotment option to purchase from the Corporation up to an additional 1.2 million common shares of the Corporation, exercisable for a period of 30 days from the closing of the Offering. If the over-allotment option is exercised, the Corporation will use the proceeds from the sale of these additional shares to subscribe for additional units of KPLP, which will result in the Corporation having up to a 17.6% interest in KPLP.

KP Tissue, headquartered in Mississauga, Ontario, is a manufacturer of quality tissue products.

McCarthy Tétrault LLP represented KP Tissue, the issuer, with a team led by Iain Scott.