Clearwater Paper's 2-for-1 stock split will be effected by a 100% stock dividend. Each Clearwater Paper stockholder will receive one additional share of stock for each share they owned as of the Record Date (August 12, 2011). For example: as of the Record Date if an investor owns 100 shares of Clearwater Paper stock and the market price is $75 per share, that investor's total investment in Clearwater Paper stock is worth $7,500. After the split the investor will have 200 shares of Clearwater Paper stock, but the market price will be approximately $37.50 per share. The value of the investor's total investment in Clearwater Paper remains the same at $7,500 until the stock price moves up or down.
Your tax basis or cost will be equally divided among the new shares. For example, if prior to the 2-for-1 stock split an investor had purchased 100 shares of Clearwater Paper stock at $50 per share, following the distribution of the stock dividend, that investor's holdings would become 200 shares with a basis of $25 per share.
Our stock transfer agent, Computershare, will mail written statements to registered stockholders indicating their split-adjusted shares. If your stock is currently held in a brokerage account, the information will be sent directly to your broker.
If you currently hold stock in your name, you will be notified at the address Computershare has on file. To verify your address you can call Computershare directly at (866)-205-6799. Please be prepared to provide your investor ID number which was provided on the statement of ownership you received from Computershare as evidence of your ownership position in Clearwater Paper. If your stock is currently held in a brokerage account, the information will be sent directly to your broker.
If you have an account under either the Clearwater Paper Salaried 401(k) Plan or the Clearwater Paper Hourly 401(k) Plan (each, the "Plan") with any assets invested in Clearwater Paper Corporation stock, the number of shares in your account under the Plan will be adjusted accordingly. No action on your part is required. Should you, however, have further questions regarding any impact to your account under the Plan, please contact Mercer at (800) 685-6542.