By Paul A. Harris
St. Louis, March 22 - Abitibi-Consolidated Co. priced an upsized and restructured $450 million issue of 10-year senior notes (Ba3/BB-) at par to yield 8 3/8%, according to a syndicate source.
Price talk was 8 3/8% to 8½%.
The company dropped a planned tranche of seven-year notes.
Citigroup and Credit Suisse First Boston were joint bookrunners for the quick-to-market 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. were co-managers.
Proceeds will be used to repay debt.
The issue was upsized from $400 million.
The Montreal-based company manufactures newsprint, paper, and other forest products.
Issuer: | Abitibi-Consolidated Co.
|
Amount: | $450 million (increased from $400 million)
|
Maturity: | April 1, 2015
|
Security description: | Senior notes
|
Bookrunners: | Citigroup, Credit Suisse First Boston
|
Coupon: | 8 3/8%
|
Price: | Par
|
Yield: | 8 3/8%
|
Spread: | 390 basis points
|
Call protection: | Make-whole call at Treasuries plus 50 basis points
|
Trade date: | March 22
|
Settlement date: | March 28
|
Ratings: | Moody's: Ba3
|
| Standard & Poor's: BB-
|
Price talk: | 8 3/8%-8½%
|
|
© 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.