May 19 (Reuters) - Paper producer Cellu Tissue Holdings,
Inc on Tuesday sold $255 million, five-year notes in the 144a
private placement market, said IFR, a Thomson Reuters
publication.

The size of the deal was increased from an originally
planned $230 million.

J.P. Morgan was the sole bookrunning manager for the sale.
BORROWER: CELLU TISSUE HOLDINGS INC
AMT $255 MLN* COUPON 11.50 PCT MATURITY 6/1/2014
TYPE SR SEC NTS ISS PRICE 96.386 FIRST PAY 12/3/2009
MOODY'S B2 YIELD 12.50 PCT SETTLEMENT 6/3/2009
S&P SINGLE-B SPREAD 1,039 BPS PAY FREQ SEMI-ANNUAL
FITCH N/A MORE THAN TREAS NON-CALLABLE 2 YEARS
* $245.7384 MLN PROCEEDS TO ISSUER