Domtar starts roadshow for $775 million seven-year secured notes backing buyout of company

By Paul A. Harris

Portland, Ore., Sept. 28 – Domtar Corp. started a roadshow on Tuesday for a $775 million offering of seven-year senior secured notes (Ba2/BB+/BB+), according to a market source.

The deal, which was scheduled to kick off on a Tuesday conference call with investors, is expected to price late in the Sept. 27 week.

Barclays is the left bookrunner. BMO Capital Markets Corp., Credit Suisse Securities (USA) LLC and Wells Fargo Securities LLC are the joint bookrunners.

The Rule 144A for life notes come with three years of call protection. A special call provision will enable the issuer to redeem 10% of the notes annually at 103 during the non-call period.

Proceeds plus a new $775 million term loan will be used to fund the acquisition of Domtar by Paper Excellence and to fund a potential redemption of Domtar’s existing senior notes.

Domtar is a Fort Mill, S.C.-based provider of fiber-based products.

Paper Excellence is a British Columbia-based pulp and paper manufacturer.

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