Orchids Paper Products Company, today announced the pricing of its underwritten public offering of 1,500,000 shares of its common stock at a price of $23.00 per share. The offering is expected to close on or about April 29, 2015, subject to customary closing conditions. In addition, the Company has granted the underwriters a 30-day option to purchase up to an additional 225,000 shares of common stock at the offering price, less underwriting discounts and commissions.
Jefferies LLC is acting as the sole book-running manager, and Oppenheimer & Co. Inc. and Craig-Hallum Capital Group are acting as co-managers for the offering.
The Company intends to use the net proceeds from the offering, together with bank financing and cash on hand, to construct and operate a fully integrated paper mill in Barnwell, South Carolina, consisting of a new facility to house a new paper machine and converting equipment to convert the parent rolls into finished product and to provide warehouse space for finished product and raw materials. The Company intends to use the remainder of the proceeds, if any, for general corporate purposes.
The shares will be issued pursuant to the Company's existing shelf registration statement on Form S-3, previously filed with and declared effective by the Securities and Exchange Commission, or SEC. The offering is being made only by means of a prospectus supplement and accompanying prospectus, copies of which may be obtained from Jefferies LLC, 520 Madison Ave., 2nd Floor, New York, NY 10022, 877-547-6340, email: Prospectus_Department@Jefferies.com.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities of the Company, nor shall there be any sale of securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About Orchids Paper Products Company
Orchids Paper Products Company is customer-focused, national supplier of high quality consumer tissue products primarily serving the at home private label consumer market. The Company produces a full line of tissue products, including paper towels, bathroom tissue and paper napkins, to serve the value through ultra-premium quality market segments from its operations in northeast Oklahoma and Mexicali, Mexico. The Company provides these products primarily to retail chains throughout the United States.