Forest products giant Catalyst Paper Corp. (TSX:CTL) plans to raise $200 million in a private placement offered in the U.S. and Canada.
The company said it plans to use the proceeds of its debt offering of senior notes for general corporate purposes, which would include possible acquisitions and investments.
The offering comes a couple of weeks after the company decided to cut more than 300 jobs and move its head office from downtown Vancouver to Richmond in an effort to cut costs and return to profitability. The cuts are expected to save Catalyst around $25 million a year.
The company has racked up more than $70 million in losses in the past three years. While managing to reduce its net loss last year by 37% to $15.9 million, from a net loss of $25.9 million, Catalyst sales have stayed relatively flat at between $1.8 billion and $1.9 billion in the past three years. Catalyst's share price range during the past week: between $3.47 and $3.60; 52-week high: $4.31; 52-week low: $2.47.