Abitibi-Consolidated get tenders for $1.066 billion of notes in over-subscribed offer

By Jennifer Chiou

New York, Dec. 16 - Abitibi-Consolidated Inc. said it and its subsidiaries, Abitibi-Consolidated Co. of Canada and Abitibi-Consolidated Finance LP, received tenders from holders of $1.066 billion of their outstanding notes series in their completed tender offer.

The company said it accepted $578.811 million of notes for purchase in the offer, which ended at midnight ET on Dec. 15.

The companies said they accepted for purchase all $184.814 million of the tendered 6.95% notes due Dec. 15, 2006, all $138.997 million of the tendered 7 5/8% notes due May 15, 2007, $50 million of the $209.219 million of tendered 6.95% notes due April 1, 2008, $100 million of the $204.702 million tendered 7/8% notes due Aug. 8, 2009 and $105 million of the $327.783 million tendered 8.55% notes due Aug. 8, 2010.

On, Dec. 2, the companies increased to $184.814 million from $100 million the purchase amount of the 6.95% notes due Dec. 15, 2006, to $138.888 million from $100 million the 7 5/8% notes, to $50 million from $25 million the 6.95% notes due April 1, 2008, to $100 million from $50 million the 7 7/8% notes and to $105 million from $75 million the 8.55% notes.

For each $1,000 principal amount of notes, Abitibi-Consolidated said it will pay $1,016.51 for the 6.95% notes due 2006, $1,029.27 for the 7 5/8% notes, $1,015.88 for the 6.95% notes due 2008, $1,005.40 for the 7 7/8% notes and $1,022.84 for the 8.55% notes.

Holders who tendered their securities on or prior to 5 p.m. ET on Dec. 1 will receive the early tender premium of $20.00 per $1,000 principal amount of notes that is included in the payout.

For each $1,000 principal amount of notes, the company based the payout on the present value of the notes on their earliest redemption date, discounted using: the yield to maturity of the 2 7/8% Treasury due Nov. 30, 2006 and 75 basis points for the 6.95% notes due 2006; the yield to maturity of the 4 3/8% Treasury due May 15, 2007 and 100 bps for the 7 5/8% notes; the yield to maturity of the 3% Treasury due Feb. 15, 2008 and 175 bps for the 6.95% notes due 2008; the yield to maturity of the 3 5/8% Treasury due July 15, 2009 and 325 bps for the 7 7/8% notes; and the yield to maturity of the 4½% Treasury due Nov. 15, 2010 and 350 bps for the 8.55% notes.

Abitibi previously said it may increase the principal purchase amount for any or all series of notes.

Citigroup Corporate and Investment Banking (800 558-3745), Goldman, Sachs & Co. (800 828-3182) and Credit Suisse First Boston LLC (800 820-1653 or 866-470-3700) are dealer managers. Global Bondholder Services Corp. is the information agent (call collect 212 430-3774 or 866 470-3700).

Abitibi-Consolidated, which launched the tender offers on Nov. 17, is a Montreal producer of newsprint and commercial printing papers.

© 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.