Domtar begins cash tender offer for notes due 2022, 2042, 2044

By Wendy Van Sickle

Columbus, Ohio, March 1 – Domtar Corp. began a cash tender offer for any and all of its $300 million of 4.4% senior notes due 2022 (Cusip: 257559AH7) and a combined $300 million of its $250 million outstanding 6¾% senior notes due 2044 Cusip: 257559AK0) and $250 million outstanding 6¼% senior notes due 2042 (Cusip: 257559AJ3), according to a news release Monday.

The 2044 notes will have acceptance priority over the 2042 notes.

The 2022 notes’ consideration will be priced based on the 0.125% Treasury note due Feb. 28, 2023 plus 40 basis points.

The consideration for the 2044 notes will be based on the 1.625% Treasury note due Nov. 15, 2050 plus 215 bps.

The consideration for the 2042 notes will be set using the 1.625% Treasury note due Nov. 15, 2050 plus 200 bps.

In each case, the total consideration will include an early premium of $30 per $1,000 principal amount of notes tendered by the early deadline, 5 p.m. ET on March 12.

Early settlement will occur on March 16.

The offers will expire at 11:59 p.m. ET on March 26.

Pricing will be set at 10 a.m. ET on March 15.

BofA Securities, Inc. (981 387-3907), Deutsche Bank Securities Inc. (866 627-0391 or 212 250-2955) and Goldman Sachs & Co. LLC (800 828-3182 or 212 902-5962) are the dealer managers.

Global Bondholder Services Corp. (212 430-3774, 866 470-4200 or contact@gbsc-usa.com) is the information and tender agent.

Domtar makes paper and other fiber-based products and is based in Fort Mill, S.C.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.