Domtar to Issue US$400 Million of Notes
Montreal, Canada (ots/PRNewswire)
Domtar announced today that it has entered into a definitive agreement with a group of underwriters for the sale of an aggregate principal amount of US$400 million of its 7.125 % notes due 2015 pursuant to a public offering in the United States.
The group of underwriters is led by J.P. Morgan Securities Inc. and Citigroup Global Markets Inc. as joint book-running managers.
Domtar intends to use the gross proceeds from the sale of the notes to redeem its 8.75% notes due in August 2006 in an aggregate principal amount of US$150 million and the balance to repay a substantial portion of its unsecured revolving credit facility.
This communication shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. This communication is not, and under no circumstances is it to be construed as, an advertisement or a public offering of these securities in Canada. A copy of the prospectus may be obtained from J.P. Morgan Securities Inc., 270 Park Avenue, 8th Floor, New York, New York 10017 (telephone: +1-(212)-834-4533).
DOMTAR IS THE THIRD LARGEST PRODUCER OF UNCOATED FREESHEET PAPER IN NORTH AMERICA. IT IS ALSO A LEADING MANUFACTURER OF BUSINESS PAPERS, COMMERCIAL PRINTING AND PUBLICATION PAPERS, AND TECHNICAL AND SPECIALTY PAPERS. DOMTAR MANAGES ACCORDING TO INTERNATIONALLY RECOGNIZED STANDARDS 18 MILLION ACRES OF FORESTLAND IN CANADA AND THE UNITED STATES, AND PRODUCES LUMBER AND OTHER WOOD PRODUCTS. DOMTAR HAS 10,000 EMPLOYEES ACROSS NORTH AMERICA. THE COMPANY ALSO HAS A 50% INVESTMENT INTEREST IN NORAMPAC INC., THE LARGEST CANADIAN PRODUCER OF CONTAINERBOARD.
Contact:
For further information: Christian Tardif, Manager, Corporate and
Financial Communications, +1-(514)-848-5515, christian.tardif@domtar;
SOURCE: Daniel Buron, Senior Vice President and Chief Financial
Officer, +1-(514)-848-5234, daniel.buron@domtar.com; To request a
free copy of this organization's annual report, please go to
http://www.newswire.ca and click on reports@cnw.