Abitibi-Consolidated of Canada to sell $350 million notes in two parts Wednesday

By Paul A. Harris

St. Louis, June 8 - Abitibi-Consolidated of Canada Inc. expects to price $350 million of seven-year notes in fixed- and floating-rate tranches (Ba2/BB) late Wednesday, according to a syndicate source.

Citigroup and Banc of America Securities are joint bookrunners for the Rule 144A offering. CIBC World Markets, Scotia Capital, National Bank Financial, ABN Amro, SGC, Credit Suisse First Boston and Tokyo Mitsubishi are co-managers.

The fixed-rate tranche will feature a make-whole call. The floater will come with two years of call protection.

Proceeds will be used to pay down the company's revolving credit facility and repay its term loan.

The issuer is a Montreal-based manufacturer of newsprint, paper and other forest products.

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