PRYOR, Okla., April 20, 2015 /PRNewswire/ -- Orchids Paper Products Company (the "Company") (NYSE MKT: TIS), a customer-focused, national supplier of high quality consumer tissue products, today announced the commencement of a proposed underwritten public offering of 1,500,000 shares of its common stock. In connection with this offering, the Company has granted the underwriters a 30-day option to purchase up to an additional 225,000 shares of common stock.
The Company intends to use the net proceeds from the proposed offering, together with bank financing and cash on hand, to construct and operate a fully integrated paper mill in Barnwell, South Carolina, consisting of a new facility to house a new paper machine and converting equipment to convert the parent rolls into finished product and to provide warehouse space for finished product and raw materials. The Company intends to use the remainder of the proceeds, if any, for general corporate purposes.
Jefferies LLC will act as sole book-running manager for the proposed offering. Oppenheimer & Co. Inc. and Craig-Hallum Capital Group will act as co-managers.
The shares will be issued pursuant to the Company's existing shelf registration statement on Form S-3, previously filed with and declared effective by the Securities and Exchange Commission, or SEC. The proposed offering will be made only by means of a prospectus supplement and accompanying prospectus, copies of which may be obtained from Jefferies LLC, 520 Madison Ave., 2nd Floor, New York, NY 10022, 877-547-6340, email: [email protected].
This announcement shall not constitute an offer to sell or the solicitation of an offer to buy any securities of the Company, nor shall there be any sale of securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About Orchids Paper Products Company
Orchids Paper Products Company is customer-focused, national supplier of high quality consumer tissue products primarily serving the at home private label consumer market. The Company produces a full line of tissue products, including paper towels, bathroom tissue and paper napkins, to serve the value through ultra-premium quality market segments from its operations in northeast Oklahoma and Mexicali, Mexico. The Company provides these products primarily to retail chains throughout the United States.
Safe Harbor for Forward-Looking Statements
This press release contains forward-looking statements that involve certain contingencies and uncertainties. The Company intends these forward-looking statements to be covered by the safe harbor provision for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. These statements relate to future events or future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause its actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. In some cases, forward-looking statements can be identified by terminology such as "may," "should," "could," "expects," "plans," "intends," "anticipates," "believes," "estimates," "predicts," "potential," "will" or "continue" or the negative of such terms or other comparable terminology. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, performance or achievements. These statements are only predictions.
Factors that could materially affect the Company's actual results, levels of activity, performance or achievements include, without limitation, those detailed under the caption "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2014, as filed with the Securities and Exchange Commission on March 9, 2015.
The Company does not undertake any duty to update these forward-looking statements after the date hereof, even though the Company's situation may change in the future. All of the forward-looking statements herein are qualified by these cautionary statements.
For more information, please contact:
Chief Financial Officer
Orchids Paper Products Company
SOURCE Orchids Paper Products Company