Fortress Paper Announces Convertible Debenture Financing

Fortress Paper Ltd. (“Fortress Paper” or the “Corporation”) today announces, further to its news release of March 18, 2010, the signing of a subscription agreement (the “Subscription Agreement”) with Solidarity Fund QFL (the “Fund”) providing for the subscription of an unsecured convertible debenture of Fortress Paper (the “Debenture”) in the principal amount of $15 million maturing five years following the date of its issuance and bearing interest at a rate of 7% per annum. The Debenture will be convertible, in whole or in part, at the option of the Fund into common shares of Fortress Paper at any time after the date of its issuance at a conversion price equal to $20.00.
The Debenture will be redeemable, in whole or in part, at the option of Fortress Paper from the second anniversary
date of its issuance, provided that the volume weighted average trading price of Fortress’ common shares on the
Toronto Stock Exchange (the “TSX”) is not less than $25.00.
The Debenture financing is part of the financing package being arranged by Fortress Paper in connection with its
plans to acquire and convert the Thurso Mill in Québec into a high quality specialty cellulose mill and to construct
a new cogeneration facility as announced on March 18, 2010.
The closing of the Subscription Agreement is subject to various conditions, including (i) the concurrent completion
of a senior debt financing providing for credit facilities in the amount of up to $100 million to be used in connection
with the Thurso Mill; (ii) the closing of the acquisition of the Thurso Mill; and (iii) receipt of TSX approval for the
issuance by Fortress Paper of the Debenture.
The Ontario Superior Court of Justice (Commercial List) has approved the sale of the Thurso Mill. The closing of
the acquisition of the Thurso Mill and Subscription Agreement is expected to occur on or about April 30, 2010.
pixel Fortress Paper Announces Convertible Debenture Financing

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