By Andrea Heisinger
New York, March 7 - Domtar Corp. sold an upsized $300 million of 4.4% 10-year senior notes on Wednesday to yield Treasuries plus 245 basis points, a source away from the trade said.
The deal size was increased from $250 million.
The notes (Baa3/BBB-/) were priced at 99.781 to yield 4.427%.
There is a make-whole call at Treasuries plus 40 bps and a change-of-control put at 101%.
Deutsche Bank Securities Inc., Goldman Sachs & Co. and J.P. Morgan Securities LLC were the bookrunners.
Proceeds are being used to fund all or a substantial portion of the purchase price of a tender offer, including payment of accrued interest and any applicable early tender premium. Any remainder will be used for general corporate purposes.
The paper products maker is based in Montreal.
| Issuer: | Domtar Corp.
|
| Issue: | Senior notes
|
| Amount: | $300 million, increased from $250 million
|
| Maturity: | April 1, 2022
|
| Bookrunners: | Deutsche Bank Securities Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC Coupon: | 4.4%
|
| Price: | 99.781
|
| Yield: | 4.427%
|
| Spread: | Treasuries plus 245 bps
|
| Call: | Make-whole at Treasuries plus 40 bps
|
| Change-of-control put: | 101%
|
| Trade date: | March 7
|
| Settlement date: | March 16
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB-
|
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