Initial Public Offering

Industrial
Initial Public Offering

Summary

Baird served as co-manager in this offering

About

Cellu Tissue Holdings, Inc. (“Cellu Tissue” or “the Company”) (NYSE:CLU) recently completed an initial public offering of 8,300,000 shares of its common stock at $13.00 per share, generating gross proceeds of $107.9 million. In the offering, Cellu Tissue sold 2,675,000 shares, while existing stockholders sold 5,625,000 shares. Cellu Tissue will not receive any of the proceeds from the sale of shares by the selling stockholders. Cellu Tissue intends to use the net proceeds it receives from the offering to pay down existing indebtedness, including potentially, but not limited to, redeeming or repurchasing a portion of its outstanding senior secured notes, and repaying its outstanding acquisition promissory note.

Cellu is a North American producer of tissue products, with a strategic focus on consumer-oriented private label tissue products and a growing presence in the value retail tissue market. The Company manufactures large rolls of tissue, which are referred to as hardrolls, from purchased pulp and the Company’s own recycled fiber. The Company is a vertically integrated manufacturer, which means that the Company converts some of the hardrolls it produces into finished and packaged tissue products, and sells the remainder of hardrolls to third-party converters of tissue products. The Company’s vertically integrated manufacturing operations and extensive geographic footprint enable it to deliver a broad range of cost-competitive products with brand-like quality manufactured to its customers' specifications.

The Baird team included our dedicated industry bankers and members of our Financial Sponsors and Equity Capital Markets group.

For additional information about this transaction, please contact:

Les Cheek (617) 426-5789
Justin Albert (312) 609-4995
Yong-Jae Kim (312) 609-4939
Industrial
Initial Public Offering
Date
January 2010
Company
Cellu Tissue Holdings, Inc.
Transaction
M&A
Sectors
Industrial
Target Location
North America

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