Domtar gets consents needed to amend four series of notes

By Angela McDaniels

Tacoma, Wash., Nov. 6 - Domtar Inc. said it received tenders and consents from holders of a majority of its 7 7/8% notes due 2011, 5 3/8% notes due 2013, 7 1/8% notes due 2015 and 9½% debentures due 2016.

The consents will allow the company to eliminate or modify some restrictive covenants in the note indentures, allow Domtar Inc. to transfer all or most of the capital stock or equity interests of its U.S. subsidiaries to parent company Domtar Corp. or one of its subsidiaries, eliminate Domtar Inc.'s obligation to file reports with the Securities and Exchange Commission or otherwise provide reports to noteholders absent a requirement to file such reports under applicable law and eliminate certain events of default.

The supplemental indentures were executed on Nov. 1, and the amendments will become operative once Domtar Corp. accepts the tendered notes on Nov. 19.

Domtar Inc. began an exchange offer and consent solicitation for the notes on Oct. 17. The consent deadline was 5 p.m. ET on Oct. 30, and the exchange offer ends at midnight ET on Nov. 14.

Tendered notes will be exchanged for equal amounts of new notes issued by Domtar Corp. with identical interest rates and maturity dates.

Those who tendered by the consent deadline will also receive a consent payment of $2.50 per $1,000 principal amount of notes.

Domtar Inc. said it plans to deregister any notes that remain outstanding after the exchange offer.

Global Bondholder Services Corp. (866 470-3700 or 212 430-3774) is the information agent. J.P. Morgan Securities Inc. (866 834-4666 or 212 834-4077) is the lead dealer manager and solicitation agent while the co-dealer manager and co-solicitation agent is Deutsche Bank Securities Inc. (866 627-0391 or 212 250-2955).

On Oct. 17, Domtar Inc. also began soliciting proxies from holders of its outstanding Canadian dollar-denominated 10% debentures due 2011 and 10.85% debentures due 2017. The company will seek approval of amendments at a meeting on Nov. 14, including one to provide Domtar Corp. with the right to acquire, at anytime, all outstanding debentures in exchange for new securities with identical terms.

Those who submitted proxies prior to 5 p.m. ET on Oct. 30 will receive an early consent payment of C$2.50 per C$1,000 principal amount.

Georgeson Inc. (888 605-8384) is the information agent for the proxy solicitation. The dealer manager for the proxy solicitations is Scotia Capital Inc. (416 863-7257).

Domtar Corp. is a paper company based in Montreal.

© 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.