Ainsworth Lumber Co. Ltd. (TSX: ANS) Friday announced plans to raise $176 million through a common share offering as part of a previously announced refinancing plan.
The plan involves the sale of 140 million common shares. The company has filed a preliminary prospectus with securities regulators to approve the offering.
The proceeds from the sale, along with debt financing, will be used to pay a US$350 million debt that includes a term loan due June 2014 and senior unsecured notes due July 2015.
Under the rights offering, common shareholders will be offered rights to subscribe for additional common shares of Ainsworth for $1.25. Ainsworth shares were selling a $3.20 at close of markets Friday – an 11.89% increase.
Ainsworth makes oriented strand board and owns two mills in Alberta, one in Ontario and one at 100 Mile House in B.C.
