American timber company Louisiana-Pacific (LP) is issuing 18 million shares of its common stock in a move designed to pay down debt.
The Nashville-based company, which makes panels and engineered wood products, is offering the shares at US$6.75 per share as it looks to retire up to 35% of its senior secured notes, due 2017. It will also use the cash for general corporate purposes.
LP has granted the underwriters a 30-day option to purchase up to 2.7 million additional shares. The offering is scheduled to close on September 28.
The company has targeted an worldwide sales drive, as it seeks to capitalise on Weyerhaeuser’s exit from the international engineered wood products market.
