NEW YORK (Reuters) – Cellu Tissue Holdings Inc priced its initial public offering below the estimated range but sold more shares than anticipated.
Alpharetta, Georgia-based Cellu, which makes specialty paper products that are used in everything from toilet paper to paper towels, sold 8.3 million shares for $13 a piece, raising about $107.9 million, an underwriter said.
The company had originally planned to sell 7.8 million shares for between $15 and $17 each.
The majority of the proceeds will go to private equity backer Weston Presidio LP. Cellu said in its latest filing with the U.S. Securities and Exchange Commission it expects net proceeds of only about $29.4 million, which it will use to repay debt.
Cellu is expected to debut on the New York Stock Exchange on Friday under the symbol “CLU”. Underwriters were led by Goldman Sachs & Co and JPMorgan. They have the option to purchase an additional 1.17 million shares. (Reporting by Clare Baldwin; Editing by Tim Dobbyn)
peHUB Note: Weston Presidio held an 83.8% pre-IPO stake in Cellu Tissue.