By Paul A. Harris
St. Louis, March 22 - Abitibi-Consolidated Co. priced an upsized and restructured $450 million issue of 10-year senior notes (Ba3/BB-) at par to yield 8 3/8%, according to a syndicate source.
Price talk was 8 3/8% to 8½%.
The company dropped a planned tranche of seven-year notes.
Citigroup and Credit Suisse First Boston were joint bookrunners for the quick-to-market registered offering. CIBC World Markets, Banc of America Securities LLC, Scotia Capital, Putnam Lovell, RBC Capital Markets, ABN Amro, SG Corporate & Investment Banking and Stifel, Nicolaus & Co. were co-managers.
Proceeds will be used to repay debt.
The issue was upsized from $400 million.
The Montreal-based company manufactures newsprint, paper, and other forest products.
| Issuer: | Abitibi-Consolidated Co.
|
| Amount: | $450 million (increased from $400 million)
|
| Maturity: | April 1, 2015
|
| Security description: | Senior notes
|
| Bookrunners: | Citigroup, Credit Suisse First Boston
|
| Coupon: | 8 3/8%
|
| Price: | Par
|
| Yield: | 8 3/8%
|
| Spread: | 390 basis points
|
| Call protection: | Make-whole call at Treasuries plus 50 basis points
|
| Trade date: | March 22
|
| Settlement date: | March 28
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: BB-
|
| Price talk: | 8 3/8%-8½%
|
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