AbitibiBowater calls $85 million 10¼% senior secured notes on Nov. 4

By Tali David

Minneapolis, Oct. 4 - AbitibiBowater Inc. announced that the company would take advantage of its strong liquidity position to redeem an additional $85 million of its bonds.

The company said it will use available cash to carry out the redemption of $85 million in principal amount of its 10¼% senior secured notes due 2018, plus accrued and unpaid interest.

The redemption is scheduled to occur on Nov. 4, at a redemption price of 103%.

The redemption will reduce AbitibiBowater's total debt to a face amount of approximately $586 million, according to a company news release.

This step is in addition to the approximately $270 million of debt the company redeemed in June.

"Today's announcement underscores our commitment to reduce debt and the associated interest burden at every opportunity," Richard Garneau, president and chief executive officer, said in the release. "Debt reduction remains a key part of our strategy to decrease fixed costs and improve the company's financial position and competitiveness."

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