By Paul A. Harris
St. Louis, March 26 - Abitibi-Consolidated Co. of Canada priced a slightly downsized $413 million issue of three-year senior secured notes (B1/B+) at par to yield 13¾% on Wednesday, according to an informed source.
The yield was printed at the tight end of the 13¾% to 14% price talk.
Goldman Sachs & Co. and J.P. Morgan Securities Inc. were the bookrunners for the Rule 144A and Regulation S with registration rights issue, which was downsized from $415 million.
Meanwhile Abitibi-Consolidated downsized its 364-day senior secured term loan to $400 million from $450 million and priced the term loan with a coupon of Libor plus 800 basis points, with a 3.5% Libor floor, at an original issue discount of 96.00.
Proceeds will be used to help address upcoming maturities and liquidity needs.
Abitibi is a Montreal-based producer of newsprint and commercial printing papers, market pulp and wood products.
| Issuer: | Abitibi-Consolidated Co. of Canada
|
| Amount: | $413 million, decreased from $415 million
|
| Maturity: | April 1, 2011
|
| Security description: | Senior secured notes
|
| Bookrunners: | Goldman Sachs & Co., J.P. Morgan Securities Inc.
|
| Coupon: | 13¾%
|
| Price: | Par
|
| Yield: | 13¾%
|
| Spread: | 1,186 bps
|
| Call protection: | Non-callable
|
| Trade date: | March 26
|
| Settlement date: | March 31
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: B+
|
| Distribution: | Rule 144A/Regulation S with registration rights
|
| Price talk: | 13¾% to 14%
|
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