News Archive
Norbord Inc. Announces Secondary Bought Deal Offering Of Its Common Shares
Thursday, March 11, 2010
Under the agreement, the syndicate has agreed to purchase 9,000,000 common shares of the Corporation ("Common Shares") at a purchase price of $16.70 per Common Share, for gross proceeds of $150,300,000. Of those Common Shares, 8,680,000 Common Shares will be offered by Brookfield's wholly-owned subsidiary and 320,000 Common Shares will be offered by management of the corporation. In addition, Brookfield's wholly-owned subsidiary has granted the underwriters an over-allotment option, exercisable in whole or in part at any time for a period of 30 days from closing, to purchase up to an additional 900,000 Common Shares held by Brookfield's wholly-owned subsidiary.
Brookfield and its affiliates currently own approximately 73% of the Corporation's 43.2 million common shares outstanding. Upon completion of the Offering, but before giving effect to the over-allotment option, Brookfield and its affiliates will own approximately 22.8 million Common Shares, representing a 53% interest in the Corporation.
"Brookfield is a long-standing and supportive shareholder," said Barrie Shineton, President and CEO of Norbord Inc. "I view their ownership level adjustment as a positive development for Norbord as it increases the number of shares in our trading float available to investors."
Shares held by Mr. Shineton and Robin Lampard, Senior Vice President and Chief Financial Officer of the Corporation representing less than 4% of the total offering will also be included in the agreement. Participation in the offering by Mr. Shineton and Ms Lampard relates to personal financial planning objectives. Proceeding in this way also provides greater transparency to the market by declaring management's intentions in advance rather than after the fact. Both executives continue to hold a significant personal investment in Norbord.
The Corporation intends to file a short form prospectus in all provinces and territories of Canada in connection with the Offering. The Offering is expected to close on or about March 30, 2010. Closing is subject to a number of customary conditions, including receipt of all necessary regulatory approvals.
The Corporation will not receive any proceeds from the Offering.
This press release is not an offer of securities for sale in the United States. The Common Shares being offered have not been and will not be registered under the United States Securities Act of 1933 and accordingly are not being offered for sale and may not be offered, sold or delivered, directly or indirectly within the United States, its possessions and other areas subject to its jurisdiction or to, or for the account or for the benefit of a U.S. person, except pursuant to an exemption from the registration requirements of that Act.
Norbord Profile
Norbord Inc. is an international producer of wood-based panels with assets of $1.0 billion, employing approximately 1,950 people at 14 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.
Anita Veel
Director
Corporate & Regulatory Affairs
Tel: (416) 643-8838
anita.veel@norbord.com
