Published on 6/3/2009 in the Prospect News High Yield Daily.
New Issue: Domtar upsizes to $400 million, prices 10¾% eight-year notes at 96.157 to yield 11½%
By Paul A. Harris
St. Louis, June 3 - Domtar Corp. priced an upsized $400 million issue of 10¾% eight-year senior notes (Ba3/BB-/) at 96.157 to yield 11½% on Wednesday, according to an informed source.
The deal priced at the wide end of the 11¼% to 11½% price talk.
J.P. Morgan Securities Inc. was the left bookrunner for the quick-to-market deal. Morgan Stanley & Co. Inc. was the joint bookrunner.
Co-managers were Banc of America Securities LLC, RBC Capital Markets Corp., Scotia Capital (USA) Inc., BMO Capital Markets Corp., CIBC World Markets Corp., Citigroup Global Markets Inc., Desjardins Securities International Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co., NBF Securities (USA) Corp., TD Securities (USA) LLC, Fortis Securities LLC and Rabo Securities USA Inc.
Proceeds will be used to fund the tender for the company's 7 7/8% notes due 2011.
The issuer is a Montreal-based manufacturer and marketer of uncoated freesheet paper.
| Issuer: | Domtar Corp.
|
| Face amount: | $400 million, upsized from $250 million
|
| Proceeds: | $384,628,000
|
| Maturity: | June 1, 2017
|
| Security description: | Senior notes
|
| Left bookrunner: | J.P. Morgan Securities Inc.
|
| Joint bookrunner: | Morgan Stanley & Co. Inc.
|
| Co-managers: | Banc of America Securities LLC, RBC Capital Markets Corp., Scotia Capital (USA) Inc., BMO Capital Markets Corp., CIBC World Markets Corp., Citigroup Global Markets Inc., Desjardins Securities International Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co., NBF Securities (USA) Corp., TD Securities (USA) LLC, Fortis Securities LLC, Rabo Securities USA Inc.
|
| Coupon: | 10¾%
|
| Price: | 96.157
|
| Yield: | 11½%
|
| Call protection: | Non-callable, make-whole provision at Treasuries plus 50 bps
|
| Trade date: | June 3
|
| Settlement date: | June 9
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: BB-
|
| Distribution: | SEC registered
|
| Price talk: | 11¼% to 11½%
|
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