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Domtar gets consents for over 97% of 10% debentures, 99% of 10.85% debentures
By Jennifer Chiou
New York, Jan. 7 - Domtar Inc., a subsidiary of Domtar Corp., said it obtained tenders from holders of C$79.81 million, or 97.33%, of its 10% debentures due 2011 and C$74.39 million, or 99.3%, of its 10.85% debentures due 2017.
The offer expired at 5 p.m. ET on Jan. 3. The offer began on Nov. 29.
At the consent deadline of 5 p.m. ET on Dec. 17, holders of 97.31% of the 10% debentures and 99.25% of the 10.85% debentures had delivered consents, enough to amend the indentures.
With an early settlement date of Dec. 20, for each C$1,000 principal amount, tendering noteholders received C$1,143.83 for the 10% debentures and C$1,385.04 for the 10.85% debentures. The payout was based on the yield to maturity of a reference Canadian bond plus 125 basis points for the 10% debentures and 150 bps for the 10.85% debentures.
With a final settlement date of Jan. 7, the company said it paid C$1,111.86 for the 10% debentures and C$1,353.60 for the 10.85% debentures.
The payouts included a consent payment of C$30.00 per C$1,000 principal amount of debentures tendered before the consent deadline. Notes tendered after the consent deadline did not receive the consent payment.
Domtar also paid accrued interest up to but excluding the settlement date.
On Dec. 13, the company said that holders of 66.9% and 64.7% of the 10% debentures and the 10.85% debentures, respectively, had entered into lock-up agreements, under which they agreed to irrevocably deposit all of their debentures and deliver their consents on or prior to the consent deadline.
Scotia Capital (416 863-7257 or 800 372-3930) was the dealer manager and solicitation agent. Georgeson Shareholder Communications Canada Inc. (888 605-8384) was the information agent.
Domtar is a paper manufacturer based in Montreal.
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