AbitibiBowater pays off $270 million of debt with ACH proceeds

By Toni Weeks

San Diego, June 30 - AbitibiBowater, Inc. said it used the proceeds of the sale of the company's 75% indirect interest in ACH LP to pay off about $270 million of debt, reducing its total debt to roughly $670 million.

According to a press release, the company made the following three debt repayments in June:

• $94 million of its $850 million of 10¼% senior secured notes due 2018 at a redemption price of 105 plus accrued interest;

• $85 million of its $850 million of 10¼% senior secured notes due 2018 at a redemption price of 103 plus accrued interest; and

• A $90 million Augusta Newsprint Co. promissory note, which was repaid in full, including accrued interest.

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

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