Ainsworth Completes Rights Offering and Comprehensive Refinancing

Thu Dec 27, 2012 9:25am EST

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Ainsworth Lumber Co. Ltd.

December 27, 2012 - 09:25:14 AM

Ainsworth Completes Rights Offering and Comprehensive Refinancing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 27, 2012) - Ainsworth Lumber
Co. Ltd. (TSX:ANS)(TSX:ANS.WT) ("Ainsworth" or the "Company") is pleased to
announce that it has completed its previously announced rights offering (the
"Rights Offering") raising gross proceeds of $175 million. The closing of the
Rights Offering represents the last step in Ainsworth's comprehensive
refinancing plan originally announced on October 22, 2012. 

A total of 140 million common shares were purchased under the Rights Offering.
Pursuant to the basic subscription privilege, approximately 138.8 million
common shares were subscribed for by rightholders, including approximately 77
million by Ainsworth's largest shareholder, Brookfield Asset Management Inc.

Due to the exercise of the additional subscription privilege by rightholders,
including Brookfield, it was not necessary for Brookfield to purchase shares
pursuant to the terms of the standby purchase agreement dated November 1,
2012. Under the additional subscription privilege, rightholders purchased the
approximately 1.2 million shares not otherwise purchased by rightholders under
the basic subscription privilege. 

Upon completion of the Rights Offering, a total of 240,833,888 common shares
are issued and outstanding. Prior to the Rights Offering, Brookfield held
approximately 55.5 million common shares, representing approximately 55% of
the then issued and outstanding common shares. Upon completion of the Rights
Offering, Brookfield holds approximately 133.1 million common shares, or
substantially the same ownership percentage as prior to the Rights Offering. 

The net proceeds from the Rights Offering have been used to repay in full all
remaining amounts owed under the Company's 11% Senior Unsecured Notes due
2015, including amounts owed to certain funds managed by Brookfield. 

This news release does not constitute an offer to sell or the solicitation of
an offer to buy any securities of Ainsworth. Nor is it an offer to sell
securities or a solicitation of an offer to buy securities in any state or
jurisdiction where prohibited by law. No securities referred to herein have
been or will be registered under the United States Securities Act of 1933, as
amended, and may not be offered or sold in the United States absent
registration or an applicable exemption from the registration requirements. 

Ainsworth Lumber Co. Ltd.
Rick Eng
Vice President, Finance and Chief Financial Officer
604-661-3201 (FAX)