Kruger Products Prices Senior Unsecured Notes

Core Viewpoint - Kruger Products Inc. (KPI) is issuing CDN $165 million principal amount of 6.250% Senior Unsecured Notes due December 10, 2032, through a private placement to fund debt repayment and general corporate purposes [1][3]. Group 1: Offering Details - The Notes will be issued at a principal amount of CDN $165 million with an interest rate of 6.250%, payable semi-annually starting June 10, 2026 [1]. - The Offering is expected to close on December 10, 2025, subject to customary closing conditions [2]. - National Bank Capital Markets, CIBC Capital Markets, Scotiabank, and Desjardins Capital Markets are acting as joint book-running managers for the Offering [2]. Group 2: Use of Proceeds - The net proceeds from the Offering will be used to repay borrowings under KPSB's senior credit facilities and for general corporate purposes [3]. Group 3: Notes Structure - The Notes will be unsecured obligations of KPI and guaranteed by certain subsidiaries, including KPSB, which will be designated as a restricted subsidiary [4]. - The Notes will rank senior in payment rights to all existing and future subordinated indebtedness of KPI [4]. Group 4: Company Overview - KP Tissue Inc. (KPT) holds a 12.1% interest in KPI, which is a leading manufacturer of quality tissue products in Canada [7][8]. - KPI serves both the consumer market in Canada and the U.S. with well-known brands and operates ten FSC® COC-certified production facilities in North America [8].