Catalyst Paper Corp. (TSX:CTL) announced that its rights offering for shares, which expired on Tuesday, was 27% oversubscribed.
Catalyst will issue more than 167 million subscription receipts for gross proceeds of $125 million.
The company said that it will use money to fund a portion of its US$161 million acquisition of an Arizona-based recycle newsprint mill that's owned by a subsidiary of AbitibiBowater.
Catalyst expects the acquisition to close on April 10, at which time it will issue a common share for each subscription receipt acquired in the offering.
As a result of the oversubscription, most holders will receive fewer additional receipts than had originally been subscribed.
Catalyst's share price this week ranged between $0.99 and $0.90; 52-week high: $3.80; 52-week low: $ 0.80.