Domtar gets no tenders in change-of-control offer for 9½% debentures

By Jennifer Chiou

New York, May 7 - Domtar Corp. announced that its subsidiary Domtar Inc. received no tenders in its change-of-control offer for its $125 million of 9½% debentures due 2016.

The offer ended at midnight ET on May 4.

The Montreal-based paper company said that the offer was required under the indenture, which obliges Domtar make an offer to purchase the debentures following a change-of-control triggering event.

On March 7, as a result of the combination of the fine paper business and related assets of Weyerhaeuser Co. with Domtar Inc., one person came to hold more than 35% of Domtar Inc.'s outstanding common shares. In addition, Moody's Investors Service lowered its rating on the company within 90 days of the public announcement of the transaction due to a change in methodology for rating North American forest product companies.

For each $1,000 principal amount, the company said it would have paid $1,010 plus accrued interest up to but excluding the payment date.

Georgeson Inc. was the information agent (800 445-1790 or call collect 212 440-9800).

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