Norbord announced a bought deal secondary offering with a syndicate of underwriters led by RBC Capital Markets, BMO Capital Markets, BofA Merrill Lynch, Scotiabank, TD Securities and CIBC Capital Markets through which a fund managed by Brookfield Asset Management has agreed to sell 3,550,000 common shares of Norbord at an offering price of USD 42.35 per common share. The offering is expected to close on or about August 9, 2017. Norbord will not receive any proceeds from the offering.
The underwriters have been granted an over-allotment option, exercisable in whole or in part for a period of 30 days following closing of the Offering, to purchase up to an additional 532,500 Common Shares at the Offering Price, under the same terms.
The Common Shares are being offered under Norbord’s existing base shelf prospectus filed in the US and Canada. In the US, the Common Shares are being offered pursuant to an effective registration statement filed with the U.S. Securities and Exchange Commission. Norbord has filed a preliminary prospectus supplement in Canada and the United States relating to the Offering.
Brookfield Asset Management, its affiliates and funds managed by it currently own approximately 53% of the outstanding Common Shares of Norbord. Upon the completion of the offering, but before giving effect to the over-allotment option, Brookfield will own, directly and indirectly, 41,857,240 Common Shares, representing approximately 48.6% of Norbord.
Earlier Norbord resumed production at its OSB mill in Canada.
The company is an international producer of wood-based panels with assets of around USD 1.8 billion, employing approximately 2,600 people at 17 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.