Abitibi details revised $1.583 billion refinancing package

By Paul A. Harris

St. Louis, March 10 - AbitibiBowater Inc. detailed its revised $1.583 billion debt refinancing package in an 8-K document filed with the Securities and Exchange Commission on Monday.

The refinancing will include a new $450 million 364-day senior secured term loan, sized in the middle of the initially announced $400 million to $500 million range.

The company will also offer $257 million of new senior secured notes. That portion of the financing was downsized from what had earlier been announced as a $400 million offering of senior secured notes or loan due 2011.

In addition the refinancing will include $300 million of AbitibiBowater Inc. convertible securities. That amount is at the high end of the initially contemplated range of $200 million to $300 million "equity or equity-linked securities."

The deal also includes an upsized $415 million of restructured senior secured exchange notes, upsized from a previously announced range of $200 million to $300 million of senior unsecured exchange notes.

In addition, the refinancing will also include $161 million of proceeds generated by the sale of Abitibi-Consolidated's Snowflake, Ariz., mill.

The refinancing plan addresses the upcoming maturities and general liquidity needs of the company's Abitibi-Consolidated Inc. subsidiary.

The bond exchange offer is being led by Goldman Sachs & Co.

Holders of Abitibi's 6.95% notes due April 1, 2008, its 5¼% notes due June 20, 2008 and 7 7/8% notes due Aug. 1, 2009 are being offered the new senior unsecured exchange notes as well as cash.

AbitibiBowater will also seek an amendment to the existing Bowater Inc. revolver to allow for, among other things, the potential issuance of new AbitibiBowater equity-linked securities and a delay or modification to Bowater's planned separation of its Catawba, S.C., coated paper facility.

Abitibi is a Montreal-based producer of newsprint and commercial printing papers, market pulp and wood products.

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