Abitibi-Consolidated cuts term loan size to $400 million, sets OID at 96

By Sara Rosenberg

New York, March 26 -Abitibi-Consolidated Inc. downsized its 364-day senior secured term loan (B1/B+) to $400 million from $450 million and firmed the original issue discount at 96, according to a market source.

The original issue discount was being guided in the 96-97 area, after being changed from initial talk of 97.

Furthermore, the Libor floor on the term loan ended up at 3.5%, the source said. The Libor floor was originally guided in the 3% to 3.5% area, was then heard to be 3%, and then firmed at the high end of the initial talk.

Pricing on the term loan is Libor plus 800 basis points. During syndication, pricing was increased from initial talk of Libor plus 700 bps.

Goldman Sachs is the lead bank on the deal that 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.

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

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