KP Tissue Announces Closing of Senior Unsecured Notes Financing

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

MISSISSAUGA, Ontario, April 08, 2021 (GLOBE NEWSWIRE) -- KP Tissue Inc. (KPT) (TSX: KPT) announced today that Kruger Products L.P. (“KPLP”) has closed its previously announced offering of senior unsecured notes.

KPLP issued CDN $135 million principal amount of 5.375% Senior Unsecured Notes (the “Notes”) due April 9, 2029 by way of private placement (the “Offering”). Interest on the Notes is payable semi-annually in arrears on April 9^th and October 9^th of each year, commencing on October 9, 2021. KPLP intends to use the net proceeds of the Offering to reduce the outstanding balance under its syndicated credit facility and for general corporate purposes. In connection with the closing of the Offering, KPLP reduced the amount available under its syndicated credit facility from $250 million to $200 million.

The offer and sale of the Notes have not been and will not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”), or applicable state securities laws, and the Notes may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws. The Notes have not been and will not be qualified for sale to the public under applicable Canadian securities laws and, accordingly, any offer and sale of the Notes in Canada has been and will be made on a basis exempt from the prospectus requirements of such securities laws. This news release does not constitute an offer to sell or purchase, or a solicitation of an offer to sell or purchase, the Notes.

About KP Tissue Inc.
KPT was created to acquire, and its business is limited to holding, a limited partnership interest in KPLP. For more information visit www.kptissueinc.com. KPT currently holds a 14.7% interest in KPLP. For more information visit www.kptissueinc.com.

About Kruger Products L.P.
KPLP is Canada's leading manufacturer of quality tissue products for household, industrial and commercial use. KPLP serves the Canadian consumer market with such well-known brands as Cashmere, Purex, SpongeTowels, Scotties and White Swan. In the U.S., KPLP manufactures the White Cloud brand, as well as many private label products. The Away-From-Home division manufactures and distributes high-quality, cost-effective product solutions to a wide range of commercial and public entities. KPLP has approximately 2,700 employees and operates eight FSC COC-certified (FSC C-104904) production facilities in North America. For more information visit www.krugerproducts.ca.