Clearwater Paper Board of Directors Announces 2-for-1 Stock Split and Stock Repurchase Program
July 28 2011 - 7:01AM
Business Wire
Clearwater Paper Corporation (NYSE:CLW) today announced
that its Board of Directors has declared a 2-for-1 split of its
common stock. The split will be effected in the form of a stock
dividend payable on August 26, 2011, to shareholders of record on
August 12, 2011. Shareholders will receive one additional share for
each share of common stock held on the record date.
As of today, there are approximately 11,519,260 shares of the
company's common stock outstanding. Immediately following the
distribution of the stock dividend, there will be approximately
23,038,520 shares of the company's common stock outstanding.
"The Board's action conveys its confidence in the long-term
prospects for Clearwater Paper and is a recognition of the
significant appreciation in the company’s stock price since our
spinoff," said Gordon L. Jones, chairman, president and chief
executive officer. "Additionally, we hope the stock split will
improve the company's stock liquidity."
Clearwater Paper also announced today that its Board of
Directors has authorized the repurchase of up to $30 million of the
company's common stock from time to time. Under the stock
repurchase program, Clearwater Paper may repurchase shares in the
open market or as otherwise may be determined by management,
subject to market conditions, business opportunities, and other
factors.
“We expect to use the stock repurchase program to help offset
dilution from the issuance of shares under the company’s equity
incentive plan and to return value to our stockholders. Our strong
balance sheet gives us the flexibility to continue to execute our
growth strategies while we implement the stock repurchase program,”
said Jones.
The company may enter into Rule 10b5-1 plans to facilitate
repurchases under the stock repurchase program. The company has no
obligation to repurchase shares under this program and may suspend
or terminate the program at any time. The company intends to
finance any repurchases with cash on hand.
ABOUT CLEARWATER PAPER
Clearwater Paper manufactures quality consumer tissue,
away-from-home tissue, parent roll tissue, machine glazed
tissue, bleached paperboard, pulp and wood products at 15
manufacturing locations in the U.S. and Canada. The company is a
premier supplier of private label tissue to major retailers and
wholesale distributors, which include grocery, drug, mass merchants
and discount stores. The company also produces bleached paperboard
used by quality-conscious printers and packaging converters.
Clearwater Paper's more than 4,000 employees build shareholder
value by developing strong customer partnerships through quality
and service.
FORWARD-LOOKING STATEMENTS
This press release contains certain forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995, as amended, including statements regarding the long-term
prospects for Clearwater Paper, improvements to the company’s stock
liquidity following the stock split, the expected number of shares
to be outstanding following the stock split, the dollar value of
shares repurchased through the stock repurchase program, the
condition of our balance sheet and the execution of our growth
strategies. These forward-looking statements are based on current
expectations, estimates, assumptions and projections that are
subject to change, and actual results may differ materially from
the forward-looking statements. Factors that could cause actual
results to differ materially include, but are not limited to,
fluctuations and volatility in the company’s stock price; risks and
uncertainties arising from difficulties with the integration
process or the realization of the benefits expected from the
acquisition of Cellu Tissue; the company's ability to complete its
new facilities; customers' product preferences; market acceptance
of product price increases and competitive pricing pressure for the
company's products; changes in the United States and international
economies; changes in raw material and energy costs; cyclical
industry conditions; loss of a large customer; changes in the
Alternative Fuel Mixture Tax Credit or Cellulosic Biofuel Producer
Credit regulations and the company's eligibility for such tax
credits; changes in transportation costs and disruptions in
transportation services; unanticipated manufacturing disruptions;
changes in general and industry-specific laws and regulations;
unforeseen environmental liabilities or expenditures; labor
disruptions; and other risks and uncertainties described from time
to time in the company's public filings with the Securities and
Exchange Commission. The forward-looking statements are made as of
the date of this press release and the company does not undertake
to update any forward-looking statements.
For additional information on Clearwater
Paper, please visit our website at
www.clearwaterpaper.com.
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