Abitibi-Consolidated to bring $400 million in five- and 10-year tranches

By Paul A. Harris

St. Louis, June 12 - Abitibi-Consolidated Co. of Canada plans to offer $400 million of high-yield notes (Ba1/BB+) in two tranches, one maturing in five years, the other maturing in 10 years, according to a syndicate source. Tranche sizes remain to be determined, the source added.

Banc of America Securities and Citigroup are joint bookrunners. The syndicate also includes CIBC World Markets, Scotia Capital, National Bank Financial, ABN Amro, SG Cowen, Tokyo-Mitsubishi, BNP Paribas, Credit Suisse First Boston and RBC Capital Markets.

The source, who specified that the transaction would be done on the investment grade desk, did not provide timing on the deal.

Proceeds will be used to repay bank debt and other debt.

Abitibi-Consolidated Co. of Canada is a subsidiary of Montreal-headquartered forest products company Abitibi-Consolidated Inc.

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