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Arizona Chemical Files For $125 Mln IPO

Arizona Chemical Ltd., a supplier of pine-based chemicals, announced its plan to go public through an initial public offering of up to $125 million of its common stock.

The Jacksonville, Florida-based company refines and further upgrades two primary feedstocks, crude tall oil and crude sulfate turpentine, both of which are wood pulping co-products, into specialty chemicals.

Arizona Chemical reinvigorated its business following its acquisition from International Paper Co. (IP) by Rhône Capital in February 2007. Arizona Chemical was incorporated as a Bermuda limited company on February 12, 2010.

Arizona Chemical intends to apply to list the common shares on the New York Stock Exchange under the symbol "ARZ"

According to the filing, the company intends to use this offering proceeds to repay borrowings under First Lien Credit Agreement and to pay transaction-related expenses and remaining proceeds for general corporate purposes.

The company's total indebtedness outstanding was $338.9 million as of December 31, 2009, including $334 million of borrowings outstanding under credit agreements.

For the year ended December, 31, 2009, the company posted net income of $12.09 million and net sales of $767.46 million.

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