Abitibi talks $415 million senior secured notes due 2011 at 13¾%-14%

By Paul A. Harris

St. Louis, March 25 - Abitibi-Consolidated Co. of Canada set price talk for its $415 million offering of three-year non-callable senior secured notes (B1) at 13¾% to 14% on Tuesday, according to an informed source.

The deal is expected to price on Wednesday.

Goldman Sachs & Co. and J.P. Morgan Securities Inc. are the bookrunners for the offering, which has been marketed via Rule 144A and Regulation S with registration rights.

Proceeds will be used to help address upcoming maturities and provide liquidity.

Other funding for the refinancing will come from $300 million of convertible notes and $256.8 million of exchange senior notes.

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

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