Abitibi-Consolidated to sell $400 million notes in two parts on Tuesday

By Paul A. Harris

St. Louis, March 21 - Abitibi-Consolidated Co. plans to drive through the high-yield market Tuesday with a $400 million offering of senior notes in two tranches, according to a syndicate source.

Citigroup and Credit Suisse First Boston are joint bookrunners for the registered offering.

CIBC World Markets, Banc of America Securities LLC, Scotia Capital, Putnam Lovell, RBC Capital Markets, ABN Amro, SG Corporate & Investment Banking and Stifel, Nicolaus & Co. are co-managers.

The company is selling two bullet tranches. One will mature in 2012, the other in 2015. Tranche sizes remain to be determined.

Both will be callable with a make-whole call.

Proceeds will be used to repay debt.

No price talk was available when Prospect News went to press.

The Montreal-based company manufactures newsprint, paper, and other forest products.

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