By Paul A. Harris
St. Louis, June 13 - Abitibi-Consolidated Inc. priced an upsized offering of $500 million notes in two tranches on Friday, according to a syndicate source.
Through its Abitibi-Consolidated Co. of Canada subsidiary, the company sold $150 million of 5¼% five-year notes at 99.921 to yield 5.268% and $350 million of 6% 10-year notes at 99.259 to yield 6.10%.
The deal was increased from $400 million.
Banc of America Securities and Citigroup were joint bookrunners for the off-the-shelf sale. CIBC World Markets and Scotia Capital were joint lead managers and National Bank, ABN Amro, SG Cowen, Tokyo-Mitsubishi, BNP Paribas, Credit Suisse First Boston and RBC Capital Markets were co-managers.
The Montreal forest products company will use proceeds to repay bank debt and other debt.
| Issuer: | Abitibi-Consolidated Co. of Canada
|
| Issuer: | Notes (senior unsecured)
|
| Amount: | $500 million in two tranches (increased from $400 million)
|
| Bookrunners: | Banc of America Securities, Citigroup (joint)
|
| Call: | Make-whole call at Treasuries plus 50 basis points
|
| Settlement date: | June 18, 2003
|
| Ratings: | Moody's: Ba1
|
| Standard & Poor's: BB+
|
|
|
| Five year tranche
|
| Amount: | $150 million
|
| Maturity: | June 20, 2008
|
| Coupon: | 5¼%
|
| Price: | 99.921
|
| Yield: | 5.268%
|
| Spread: | 325 basis points
|
|
|
| 10-year tranche
|
| Amount: | $350 million
|
| Maturity: | June 20, 2013
|
| Coupon: | 6%
|
| Price: | 99.259
|
| Yield: | 6.10%
|
| Spread: | 300 basis points
|
|
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