By Paul A. Harris
St. Louis, Sept. 20 - AbitibiBowater Inc. priced an upsized $850 million issue of eight-year first-lien senior secured notes (B1//) at par to yield 10¼% on Monday, according to market sources.
The yield printed at the wide end of the 10% to 10¼% price talk. The amount was increased from $750 million.
JPMorgan, Citigroup and Barclays Capital were joint bookrunners.
Proceeds will be used to help fund the Montreal-based pulp and paper manufacturer's exit from Chapter 11.
AbitibiBowater filed bankruptcy on April 16, 2009 in the U.S. Bankruptcy Court for the District of Delaware. Its Chapter 11 case number is 09-11296.
| Issuer: | AbitibiBowater Inc.
|
| Issue: | First-lien senior secured notes
|
| Amount: | $850 million (increased from $750 million)
|
| Maturity: | Oct. 15, 2018
|
| Coupon: | 10¼%
|
| Price: | Par
|
| Yield: | 10¼%
|
| Spread: | 789 bps
|
| Call protection: | Four years
|
| Bookrunners: | JPMorgan, Citigroup, Barclays Capital
|
| Co-managers: | BMO Nesbitt Burns, CIBC, Scotia Capital
|
| Trade date: | Sept. 20
|
| Settlement date: | Oct. 4
|
| Ratings: | Moody's: B1
|
| Distribution: | Rule 144A
|
| Price talk: | 10% to 10¼%
|
| Marketing: | Roadshow
|
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