Cellu Tissue Holdings, Inc. Prices Initial Public Offering

Jan 21, 2010, 23:31 ET from Cellu Tissue Holdings, Inc.

ALPHARETTA, Ga., Jan. 21 /PRNewswire-FirstCall/ -- Cellu Tissue Holdings, Inc. ("Cellu Tissue") has priced its initial public offering of 8,300,000 shares of its common stock at $13.00 per share.  Cellu Tissue's common shares are expected to begin trading on January 22, 2010 on the New York Stock Exchange under the ticker symbol "CLU."

In the offering, Cellu Tissue will sell 2,675,000 shares, while existing stockholders will sell 5,625,000 shares.  The underwriters have a 30-day option to purchase up to an additional 1,245,000 shares from the selling stockholders.  Cellu Tissue will not receive any of the proceeds from the sale of shares by the selling stockholders.

Cellu Tissue intends to use the net proceeds it receives from the offering to pay down existing indebtedness, including potentially, but not limited to, redeeming or repurchasing a portion of its outstanding senior secured notes, and repaying its outstanding acquisition promissory note.

Goldman, Sachs & Co. and J.P. Morgan Securities Inc. are serving as joint book running managers for the offering, with BofA Merrill Lynch, Baird, William Blair & Company and D.A. Davidson & Co. acting as co-managers.  The offering is only being made by means of a prospectus, a copy of which may be obtained by contacting either Goldman, Sachs & Co., at 85 Broad Street, New York, NY 10004, Attention: Prospectus Department, by telephone at 1-866-471-2526 or by emailing Prospectus-ny@ny.email.gs.com, or J.P. Morgan Securities Inc. c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, or by telephone at (866) 803-9204 .

A registration statement relating to these securities was declared effective by the Securities and Exchange Commission on January 21, 2010.  This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which the offer, solicitation or sale of securities would be unlawful prior to their registration and qualification under the securities laws of any such state or jurisdiction.

Cellu Tissue Holdings, Inc. is a North American producer of consumer-oriented private label tissue products with a growing presence in the value retail tissue market.  Information about Cellu Tissue Holdings, Inc. is available on the Internet at www.cellutissue.com.

SOURCE Cellu Tissue Holdings, Inc.