AbitibiBowater to launch $600 million asset-based revolver on Tuesday

By Sara Rosenberg and Paul A. Harris

New York, Sept. 1 - AbitibiBowater Inc. is scheduled to hold a bank meeting on Tuesday to launch its proposed $600 million four-year asset-based revolving credit facility, according to a market source.

Citigroup, Barclays and JPMorgan are the lead banks on the deal. Each bank has committed to provide $100 million of the facility and the remaining $300 million will be syndicated.

Proceeds will be used for exit financing.

The company also plans on selling $750 million of notes to fund its emergence, but there is also the option to get some term loan debt in place of the notes.

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

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