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Abitibi-Consolidated, subsidiaries tender for several notes series
By Jennifer Chiou
New York, Nov. 17 - Abitibi-Consolidated Inc. said it and its subsidiaries, Abitibi-Consolidated Co. of Canada and Abitibi-Consolidated Finance LP, have begun a cash tender offer for certain series of their outstanding notes.
Affected notes include $100 million of the company's 6.95% notes due Dec. 15, 2006, $100 million of 7 5/8% notes due May 15, 2007, $25 million of 6.95% notes due April 1, 2008, $50 million of 7 7/8% notes due Aug. 8, 2009 and $75 million of 8.55% notes due Aug. 8, 2010.
The offer ends at midnight ET on Dec. 15, unless extended.
For each $1,000 principal amount of notes, the company will pay the present value of the notes on their earliest redemption date, discounted using: the yield to maturity of the 2 7/8% Treasury due Nov. 30, 2006 and 75 basis points for the 6.95% notes due 2006; the yield to maturity of the 4 3/8% Treasury due May 15, 2007 and 100 bps for the 7 5/8% notes; the yield to maturity of the 3% Treasury due Feb. 15, 2008 and 175 bps for the 6.95% notes due 2008; the yield to maturity of the 3 5/8% Treasury due July 15, 2009 and 325 bps for the 7 7/8% notes; and the yield to maturity of the 4½% Treasury due Nov. 15, 2010 and 350 bps for the 8.55% notes.
Holders who tender their securities on or prior to 5 p.m. ET on Dec. 1, unless extended, will receive the early tender premium of $20.00 per $1,000 principal amount of notes that is included in the calculation.
Abitibi said it may increase the principal purchase amount for any or all series of notes.
Citigroup Corporate and Investment Banking (800 558-3745), Goldman, Sachs & Co. (800 828-3182) and Credit Suisse First Boston LLC (800 820-1653 or 866-470-3700) are dealer managers. Global Bondholder Services Corp. is the information agent (call collect 212 430-3774 or 866 470-3700).
Abitibi-Consolidated is a Montreal producer of newsprint and commercial printing papers.
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