Abitibi-Consolidated ups $450 million term loan price talk to Libor plus 800 bps

By Sara Rosenberg

New York, March 25 - Abitibi-Consolidated Inc. increased price talk on its $450 million 364-day senior secured term loan to Libor plus 800 basis points from Libor plus 700 bps, according to a market source.

In addition, the original issue discount on the loan is now being guided at 96 to 97, as opposed to in the 97 area, the source said.

The term loan has a 3% Libor floor. Under original guidance, the Libor floor was being discussed somewhere in the range of 3% to 3.5%.

Goldman Sachs is the lead bank on the deal.

Proceeds will be used to help refinance existing debt, including the company's 6.95% notes, 5¼% notes, 7 7/8% notes, and credit facilities A and B.

Other funding for the large-scale refinancing will come from $415 million of three-year senior secured notes, $350 million of convertible notes and $267 million of exchange senior notes - assuming only the amount of notes necessary to satisfy the minimum tender condition are exchanged in the exchange offer.

The company also plans on closing the sale of its Snowflake, Ariz., mill in mid-April. The sale is expected to generate proceeds of $161 million, of which a portion will be used to repay some term loan debt.

Abitibi is a Montreal-based producer of newsprint and commercial printing papers, market pulp and wood products.

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