RICHMOND, Va., Oct. 2 /PRNewswire/ -- Fort James Corporation today
announced that it has determined the prices for the previously announced
tender offers by its wholly-owned subsidiary, Fort Howard Corporation, for
Fort Howard's 8-1/4% Senior Notes due 2002, its 9-1/4% Senior Notes due 2001,
its 9% Senior Subordinated Notes due 2006, and its 10% Subordinated Notes due
2003 (the "Notes"). The tender offers are being made pursuant to the Offer to
Purchase and Consent Solicitation Statement dated September 8, 1997. The
tender offers will expire at 12:00 midnight, New York City time, on October 3,
1997, unless extended.
The Total Consideration for each $1,000 principal amount of applicable
Notes properly tendered and accepted for payment is set forth in the following
table. The Total Consideration includes a Consent Payment of $15.00 per
$1,000 principal amount of Notes for which a valid consent was received by
5:00 p.m. New York City time, on September 19, 1997. Holders tendering their
Notes after the September 19, 1997, consent deadline, but prior to the
expiration of the tender offer will receive the Tender Offer Consideration,
but not the Consent Payment. Holders tendering the Notes will also receive
accrued and unpaid interest to, but excluding, the settlement date, as set
forth below.
8-1/4% 9-1/4% 9% Senior 10%
($ amounts per Senior Senior Subord. Subord.
$1,000 principal Notes Notes Notes Notes
amount of Notes) due 2002 due 2001 due 2006 due 2003
Tender Offer Consideration $1,063.53 $1,081.77 $1,066.79 $1,052.96
Consent Payment 15.00 15.00 15.00 15.00
Total Consideration 1,078.53 1,096.77 1,081.79 1,067.96
Accrued Interest 15.35 5.91 16.75 6.39
U.S. Treasury Reference
Security 6-1/4% due 6-3/8% due 5-7/8% due 6-1/8% due
2/28/02 3/31/01 2/28/99 3/31/98
Fixed Spread 20 basis 18 basis 5 basis 0
points points points
The Total Consideration was determined as of 3:00 p.m. New York City time
on October 1, 1997, by reference to a fixed spread over the yield to maturity
of the applicable U.S. Treasury Security, as listed in the table above.
The Tender Offer Consideration, the Consent Payment, as applicable, and
accrued and unpaid interest will be paid on October 8, 1997, unless the tender
offers are extended. Consummation of the tender offers is subject to the
satisfaction or waiver of certain conditions.
This news release is neither an offer to purchase nor a solicitation of an
offer to sell securities. The tender offers are only made pursuant to the
offering documents. Questions regarding the terms of the tender offers and
consent solicitations may be directed to Morgan Stanley & Co. Incorporated, at
800-624-1808. Copies of the offering documents may be obtained by calling
D.F. King & Co. Inc., at 800-290-6424.
Fort James is a leading international consumer products company, serving
consumers both at home and away-from-home with bathroom and facial tissue,
paper towels, napkins, and cups and plates. The company's popular brands
include Quilted Northern, Brawny, Dixie, Vanity Fair, Mardi Gras, Green
Forest, Soft 'N Gentle and So-Dri in North America and Lotus, Tenderly,
Colhogar and Kittensoft in Europe. Fort James also produces folding cartons
for packaging food and pharmaceuticals and communications papers such as
printing, publishing and office copy paper. The company has approximately
30,000 employees and more than 65 manufacturing facilities in the U.S., Canada
and 12 European countries.
Copies of today's news release, along with additional information on Fort
James, is available, at no charge, by calling 888-526 3711. You may also
access the company's Web site at Internet address http://www.fortjames.com.
SOURCE Fort James Corporation
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CONTACT:
Financial, Celeste Gunter, 804-649-4307, or
Media, Richard B. Elder, 804-343-4785, both of Fort James
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