Domtar tenders for 10% debentures due 2011, 10.85% debentures due 2017

By Laura Lutz

Des Moines, Nov. 29 - Domtar Inc., a subsidiary of Domtar Corp., launched tender offers and consent solicitations for all of its Canadian dollar-denominated 10% debentures due 2011 and Canadian dollar-denominated 10.85% debentures due 2017.

The offers expire at 5 p.m. ET on Jan. 3. The consent deadline is 5 p.m. ET on Dec. 17.

Tendering noteholders will receive a payout based on the yield to maturity of a reference Canadian bond plus 125 basis points for the 10% notes and 150 bps for the 10.85% notes.

The payout will include a consent payment of $30.00 per $1,000 principal amount of notes tendered before the consent deadline. Notes tendered after the consent deadline will not receive the consent payment.

Domtar will also pay accrued interest up to but excluding the settlement date.

Scotia Capital (416 863-7257 or 800 372-3930) is the dealer manager and solicitation agent. Georgeson Shareholder Communications Canada Inc. (888 605-8384) is the information agent.

Domtar is a paper manufacturer based in Montreal.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.