TORONTO, Feb. 4, 2013 /CNW/ - Cyrus Capital Partners, L.P. ("CCP") today announced that during the period of January 15, 2013 through January 31, 2013, CCP acquired indirect control over an additional 911,839 common shares ("Common Shares") of Catalyst Paper Corporation ("Catalyst Paper") of which 617,931 were acquired as a result of completion of a private purchase transaction (the "Private Purchase") pursuant to which Cyrus Opportunities Master Fund II, Ltd. ("CMF II") acquired 317,497 Common Shares, CRS Master Fund LP ("CRS") acquired 142,847 Common Shares and Crescent 1 LP ("CRES") acquired 157,857 Common Shares of Catalyst Paper from a third party at a price of CDN$1.75 per Common Share. The remaining 293,908 Common Shares were acquired on the public market by CMF II (56,714 Common Shares at CDN$1.55, 29,480 Common Shares at CDN$1.55, 823 Common Shares at CDN$ 1.77 and 5,582 Common Shares at CDN$1.75), CRS (74,537 Common Shares at CDN$1.55, 21,307 Common Shares at CDN$1.55, 270 Common Shares at CDN$ 1.77 and 1,835 Common Shares at CDN$1.75) and CRES (76,757 Common Shares at CDN$1.55, 24,213 Common Shares at CDN$1.55, 307 Common Shares at CDN$ 1.77 and 2,083 Common Shares at CDN$1.75) (the "Public Purchases").
On January 16, 2013, Cyrus Select Opportunities Master Fund Ltd. ("CSOM") disposed of 867 Common Shares and Cyrus Select Opportunities Fund LP ("CSOP") disposed of 19,133 Common Shares at a price of CDN$1.593 (the "January 16 Sales"). On January 17, 2013, CMF II disposed of 13,400 Common Shares and CSOM disposed of 11,600 Common Shares at a price of CDN$1.7757 (together with the January 16 Sales, the "Public Sales").
Following completion of the Private Purchase, Public Purchases and Public Sales, CCP now exercises indirect control over an aggregate of 3,621,362 Common Shares, or approximately 24.93% of the issued and outstanding Common Shares. Ownership of the 3,621,362 Common Shares over which CCP exercises indirect control is collectively held by CMF II, CRES, CRS, CSOM and other funds managed by CCP, including Cyrus Opportunities Fund II, L.P. ("CLP II") and CYR Fund, L.P. ("CYRF" and, collectively with CMF II, CRES, CRS, CSOM, and CLP II, the "Funds"). CCP previously exercised indirect control over an aggregate of 2,754,523 Common Shares. The table below sets forth the number and percentage amount of outstanding Common Shares owned by each of the Funds after giving effect to the Private Purchase, Public Purchases and Public Sales:
Number of Common
Percentage of Outstanding
Common Shares Held
CCP is the investment manager of each of the Funds and exercises sole discretion over all investments decisions made by each of them.
For purposes of calculating the percentages of Common Shares owned by the Funds and indirectly controlled by CCP, CCP has assumed that there were 14,527,571 Common Shares outstanding at January 17, 2013, as confirmed by Catalyst Paper to CCP.
CCP acquired indirect control over, and CMF II, CRS, CRES and the other Funds acquired ownership of, the Common Shares that are the subject of this release for investment purposes.
In connection with the investment by the Funds in the Common Shares, CCP may engage in communications with members of management and the board of directors of Catalyst Paper, other current or prospective shareholders, industry analysts, existing or potential strategic partners or competitors, investment and financing professionals, sources of credit and other investors with respect to Catalyst Paper. CCP intends to review the Funds' investment in Catalyst Paper on a continuing basis. Depending on various factors including, without limitation, Catalyst Paper's financial position, the price levels of the Common Shares, conditions in the securities markets and general economic and industry conditions, CCP's or the Funds' business or financial condition and other factors and conditions CCP deems appropriate, the Funds may in the future take such actions with respect to their investment in Catalyst Paper as CCP deems appropriate including, without limitation, seeking board representation, making proposals to Catalyst Paper concerning changes to the capitalization, ownership structure or operations of Catalyst Paper, acquiring additional Common Shares, and/or selling or otherwise disposing of some or all of their Common Shares. In addition, CCP may formulate other purposes, plans or proposals regarding Catalyst Paper or any of its securities to the extent deemed advisable in light of general investment and trading policies, market conditions or other factors or may change its intention with respect to any and all matters referred to above.
Neither the issuance of this news release in connection with the matters disclosed in this news release nor the anticipated filing by CCP of the corresponding "early warning" report required to be filed in accordance with applicable Canadian securities laws is an admission that an entity named or otherwise referred to in this news release owns or controls any described securities or is a joint actor with another entity named or otherwise referred to in this news release.
CCP's address and other contact information is set forth below. For
further information, including to obtain a copy, once filed, of the
"early warning" report required to be filed in accordance with
applicable Canadian securities laws, contact CCP at the address
SOURCE Cyrus Capital Partners, L.P.