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

MISSISSAUGA, Ontario, Oct. 25, 2024 (GLOBE NEWSWIRE) — KP Tissues Inc. (KPT) (TSX: KPT) today announced that Kruger Products Inc. (“KPI”) has, pursuant to a subscription agreement entered into today, agreed to issue and sell C$135 million 6.625% senior unsecured notes (the “Notes”) due November 1, 2031 by way of private placement (the ” placement”). Interest on the Notes is payable semi-annually in arrears on May 1 and November 1 of each year, commencing May 1, 2025.

Scotia Capital Inc., National Bank Financial Inc., CIBC Capital Markets Inc. and TD Securities Inc. are acting as joint book-running managers for the offering. The Offering is expected to close on November 1, 2024, subject to customary closing conditions. KPI intends to use the net proceeds of the offering to repurchase all of KPI’s outstanding 6.00% senior unsecured notes due April 24, 2025 (the “2025 Notes”) and for the general business needs. KPI intends to deliver a redemption notice today for the 2025 Notes with a redemption date of November 12, 2024 subject to the closing of the offering prior to such date.

The Notes will be unsecured obligations of KPI and unconditionally guaranteed, jointly and severally, by certain subsidiaries of KPI, being the same guarantors as under the terms of KPI’s syndicated credit facility. The Notes will rank senior in right of payment to all existing and future subordinated indebtedness of KPI and equal in right of payment to all indebtedness of KPI which is not subordinated in right of payment to the Notes other than any indebtedness senior to the Notes. tickets. by operation of law.

The offer and sale of the Securities has not been and will not be registered with United States Securities Act of 1933as 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 eligible for sale to the public under applicable Canadian securities laws and, accordingly, any offer and sale of the Notes in Canada will be made subject to the prospectus requirements of these securities laws.

This press release does not constitute an offer to sell or purchase, nor a solicitation of an offer to sell or purchase, the Notes. No offer, solicitation, purchase or sale shall be made in any jurisdiction in which such offer, solicitation, purchase or sale would be unlawful. This press release does not constitute notice of redemption of the 2025 Notes.

About Tissus KP Inc.
KPT was established to acquire, and its activity is limited to holding, a limited interest in KPI, which is accounted for as an equity method investment. KPT currently holds a 12.56% stake in KPI. For more information, visit www.kptissueinc.com.

About Kruger Products Inc.
KPI is Canada’s leading manufacturer of quality paper products for household, industrial and commercial use. KPI serves the Canadian consumer market with well-known brands such as Cashmere®, Purex®, SpongeTowels®, Scotties®, White Swan® and Bonterra®. In the United States, KPI manufactures the White Cloud® brand, as well as many private label products. The Away-From-Home division manufactures and distributes cost-effective, high-quality product solutions to a wide range of commercial and public entities. KPI has approximately 2,800 employees and operates ten FSC® COC (FSC® C-104904) certified production facilities in North America. For more information, visit https://www.krugerproducts.ca.

Forward-looking information
Certain information contained herein is forward-looking within the meaning of applicable Canadian securities laws. This information is generally identified by words such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “plan”, “intend”, “forecast”, ” future”, “guidance”, “may”, “predict”, “project”, “should”, “strategy”, “target”, “will” or similar expressions suggesting future results. The forward-looking information contained in this press release releases include the expected closing date of the offering, the use of the net proceeds of the offering, the delivery of notice of redemption of the 2025 Notes and the expected redemption date KPT believes that the expectations reflected in these. forward-looking information is reasonable, but no assurance can be given that such expectations will prove to be correct, and undue reliance should not be placed on such information.

Forward-looking information is not a guarantee of future performance. By its very nature, forward-looking information involves inherent assumptions, risks and uncertainties, both general and specific, as well as risks that the predictions, forecasts, projections and other forward-looking information will not be realized. These risks include, without limitation, risks associated with the ability to satisfy the closing conditions of the Offering. If one or more of these risks and uncertainties materialize, or if the assumptions described above prove incorrect, KPT’s actual performance and results in future periods could differ materially from the expressed projections of future performance or results. or implied by such forward-looking information. We caution readers not to place undue reliance on this information, as a number of important factors could cause actual results to differ materially from beliefs, plans, objectives, expectations, estimates and intentions. expressed in this forward-looking information.

The forward-looking information contained in this press release is provided for the purpose of providing information about management’s objectives, plans and range of expectations for the future and may not be appropriate for other purposes. Any forward-looking information is presented as of the date hereof and, except as required by law, KPT undertakes no obligation to publicly update or revise such information to reflect new, subsequent or other information.