Abitibi extends tender for $500 million 8.3%, 6.95% notes

New York, March 17 - Abitibi-Consolidated Inc. said that it and its Abitibi-Consolidated Co. of Canada subsidiary have extended the cash tender offers for up to $500 million principal amount of Abitibi's 8.3% notes due 2005 and Abitibi Canada's 6.95% notes due 2006.

The offer will now expire at midnight ET on April 4 instead of midnight ET on March 31. Pricing will now be fixed at 4 p.m. ET on March 22.

By the close of business on March 16, Abitibi had received tenders of $337 million or 84% of the 8.3% notes and $267 million or 89% of the 6.95% notes.

As announced on March 3, Abitibi is offering to buy any and all of the 8.3% notes and up to $150 million of the 6.95% notes.

The price will be based on the yield to maturity of the reference Treasury plus 50 basis points for the 8.3% notes and 75 basis points for the 6.95% notes.

Holders who tender by 5 p.m. ET on March 16 will receive the total amount, which includes a $10 per $1,000 early tender premium.

The Montreal-based paper maker will also pay accrued interest.

The tender is subject to conditions including the refinancing of part of Abitibi Canada's existing debt.

Citigroup Global Markets Inc. (800 558-3745) and Banc of America Securities LLC (888 292-0070) are dealer managers. Global Bondholder Services Corp. is the information agent (866 470-4200).

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