Kruger Products Closes Senior Unsecured Notes Financing

Executive Summary

• Kruger Products Inc. (KPI) closed its previously announced private placement of CDN $165 million senior unsecured notes bearing a 6.250% coupon, due December 10 2032.
• Net proceeds were partially used to fully repay existing borrowings under KPI’s senior credit facilities; the remaining balance will be applied to general corporate purposes.
• The associated syndicated credit agreement was amended and restated, increasing the facility amount to CDN $250 million and expanding the accordion feature to CDN $100 million, with KPSB added as a restricted credit party.

Key Details

• Notes Issued: CDN $165 million principal amount, 6.250% senior unsecured notes due 2032.
• Interest Payments: Semi‑annual in arrears on June 10 and December 10 each year, commencing June 10 2026.
• Use of Proceeds:
• Repayment in full of borrowings outstanding under KPI’s senior credit facilities (Kruger Products SB Inc.).
• Remainder allocated to general corporate purposes.
• Credit Facility Amendment:
• Facility amount increased from CDN $230 million to CDN $250 million.
• Accordion feature raised from CDN $75 million to CDN $100 million.
• Kruger Products SB Inc. added as a restricted credit party.
• Offering Structure: Private placement; notes not registered under U.S. securities laws and offered on an exemption basis in Canada.
• Issuer Ownership: KP Tissue Inc. holds a 12.1% equity interest in KPI (accounted for on the equity method).

Notable Quotes

(No executive quotes were provided in the release.)