TORONTO, March 18, 2013 /CNW/ - Norbord Inc. (TSX: NBD, NBD.WT) announced
today that effective March 25, 2013, it will amend certain terms of the
Warrant Indenture dated December 24, 2008 by a supplemental warrant indenture
(the "Supplemental Indenture") to include a cashless exercise feature. The
Company believes this cashless exercise feature may reduce the number of
common shares issued upon exercise of the Warrants.
Under the current terms of the Warrant Indenture, exercising 10 Warrants
together with the payment of the current Exercise Price of $13.60 entitles
holders of Norbord warrants ("Warrantholders") to receive one common share
("Common Share") of Norbord. Effective March 25, 2013, Warrantholders will
also be provided with the choice to elect to exercise their Warrants on a
cashless basis, and receive Common Shares based on the in-the-money amount of
their Warrants. Warrantholders may continue to exercise their Warrants and pay
the $13.60 Exercise Price, or alternatively, after such date they may exercise
their Warrants cashlessly and receive the number of Common Shares determined
using the following formula:
Number of Common Number of Warrants exercised/10
Shares to be issued = x (Market Price of Common
(rounded down to nearest Shares on the Exercise Date -
whole number, must be a Exercise Price)
Market Price of Common Shares
on the Exercise Date
For the purposes of the above formula, "Market Price" means the volume
weighted average trading price ("VWAP") on the Toronto Stock Exchange for the
five trading days immediately preceding the Exercise Date. In order to
inform Warrantholders of the daily Market Price of the Common Shares
applicable to a cashless exercise of the Warrants, Norbord intends to publish
the five-day VWAP on its website at www.norbord.com beginning on March 25,
2013 and each subsequent trading day until December 24, 2013, the maturity
date of the Warrants.
A notice of the Supplemental Indenture will be mailed to Warrantholders, along
with specific instructions regarding how to utilize this new cashless exercise
feature. Instructions will also be posted on the Norbord website at
Norbord Inc. is an international producer of wood-based panels with assets of
$1 billion, employing approximately 1,900 people at 13 plant locations in the
United States, Europe and Canada. Norbord is one of the world's largest
producers of oriented strand board (OSB). In addition to OSB, Norbord
manufactures particleboard, medium density fibreboard (MDF) and related
value-added products. Norbord is a publicly traded company listed on the
Toronto Stock Exchange under the symbols NBD and NBD.WT.
Contact: Heather Colpitts Manager, Corporate Affairs Tel. (416) 365-0705
SOURCE: Norbord Inc.
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CO: Norbord Inc.
-0- Mar/18/2013 21:28 GMT
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