Domtar gives early results in $250 million cash tender for notes

By Jennifer Chiou

New York, March 6 - Domtar Corp. announced the preliminary results of its up to $250 million cash tender offer for four series of notes.

The company received early tenders for the following notes listed in priority acceptance order:

• $106,928,000, or 27.79%, of its $384.75 million of 10¾% notes due 2017 with a total payment of $1,315 per $1,000 of notes;

• $31.15 million, or 25.1%, of its $124,125,000 of 9½% notes due 2016 with a total payment of $1,230;

• $46,538,000, or 21.87%, of its $212,801,000 of 7 1/8% notes due 2015 with a total payment of $1,130; and

• $1.26 million, or 1.75%, of its $72.16 million of 5 3/8% notes due 2013 with a total payment of $1,050.

As reported, the payouts include an early tender payment of $50.00 for those who tendered their notes prior to 5 p.m. ET on March 6.

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

The offer will end at midnight ET on March 20. It began on Feb. 22.

The tender is contingent on sufficient debt financing.

J.P. Morgan Securities LLC (212 834-4811 or 866 834-4666) and Deutsche Bank Securities Inc. (212 250-2955 or 866 627-0391) are the dealer managers. Global Bondholder Services Corp. is the depositary and information agent (212 430-3774 for banks and brokers or 866 470-4200).

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