Stella-Jones Announces Closing of Secondary Offering of Common Shares by Stella Jones International S.A.

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES
 OR DISSEMINATION IN THE UNITED STATES

MONTREAL, Feb. 21, 2018 (GLOBE NEWSWIRE) -- Stella-Jones Inc. (TSX:SJ) (“Stella-Jones” or the “Company”) announced today that Stella Jones International S.A. (“SJ International”), the Company’s principal shareholder, has completed its previously announced secondary offering pursuant to which SJ International sold to a syndicate of underwriters, on a bought deal basis, 5,000,000 common shares of the Company at a price of $48.50 per common share. Following completion of the secondary offering, SJ International now owns approximately 31.1% of the issued and outstanding common shares of the Company. The Company did not receive any proceeds from the secondary offering.

As previously announced, SJ International has also granted the underwriters an over-allotment option, exercisable for a period of 30 days following the date hereof, to purchase up to an additional 750,000 common shares from SJ International, at the offering price, to cover over-allotments, if any, and for market stabilization purposes. If the over-allotment option is exercised in full, SJ International’s ownership interest will be reduced to approximately 30.0% of the issued and outstanding common shares of the Company.

The syndicate of underwriters was co-led by Morgan Stanley Canada Limited and TD Securities Inc., as joint bookrunners, and also included CIBC World Markets Inc., HSBC Securities (Canada) Inc. and RBC Dominion Securities Inc.

This news release is not an offer of securities for sale in the United States. The securities being offered have not been and will not be registered under the United States Securities Act of 1933, as amended, and accordingly are not being offered for sale and may not be offered, sold or delivered, directly or indirectly within the United States, its possessions and other areas subject to its jurisdiction, except pursuant to an exemption from the registration requirements of that Act.

ABOUT STELLA-JONES
Stella-Jones Inc. (TSX:SJ) is a leading producer and marketer of pressure treated wood products. The Company supplies North America’s railroad operators with railway ties and timbers, and the continent’s electrical utilities and telecommunication companies with utility poles. Stella-Jones also manufactures and distributes residential lumber and accessories to retailers for outdoor applications, as well as industrial products for construction and marine applications. The Company’s common shares are listed on the Toronto Stock Exchange.

This press release may contain information and statements of a forward-looking nature. These statements are based on suppositions and uncertainties as well as on management’s best possible evaluation of future events. Such factors may include, without excluding other considerations, fluctuations in quarterly results, evolution in customer demand for the Company’s products and services, the impact of price pressures exerted by competitors, the ability of the Company to raise the capital required for acquisitions, and general market trends or economic changes. As a result, readers are advised that actual results may differ from expected results.