MONTREAL, March 26 /PRNewswire-FirstCall/ -- AbitibiBowater Inc. announced today that Abitibi-Consolidated Company of Canada ("ACCC"), an indirect subsidiary of AbitibiBowater, has priced a private offering of US$413,000,000 aggregate principal amount of 13.75% senior secured notes due April 1, 2011. The notes are being sold to qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and to non-U.S. persons in reliance on Regulation S under the Securities Act. The notes have not been registered under the Securities Act or any state securities laws. Therefore, the notes may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements.
ACCC also today priced a US$400,000,000 364-day senior secured term loan with a coupon of LIBOR + 800 basis points, with a 3.5% LIBOR floor, at a price of 96% of par.
The closing of both transactions is expected to occur on or about April 1, 2008, subject to the concurrent closing of both transactions and two other previously announced transactions. All four transactions are subject to the satisfaction of various closing conditions, including the receipt of various third-party approvals. The net proceeds from all four transactions will be used as part of the overall refinancing plan for the Company's Abitibi-Consolidated Inc. subsidiary, which is intended to address upcoming debt maturities and general liquidity needs.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale of any securities in any jurisdiction in which such offering, solicitation or sale would be unlawful. This press release is issued pursuant to and in accordance with Rule 135c under the Securities Act.
About AbitibiBowater --------------------
AbitibiBowater produces a wide range of newsprint, commercial printing papers, market pulp and wood products. It is the eighth largest publicly traded pulp and paper manufacturer in the world. Following the required divestiture agreed to with the U.S. Department of Justice, AbitibiBowater will own or operate 27 pulp and paper facilities and 35 wood products facilities located in the United States, Canada, the United Kingdom and South Korea. Marketing its products in more than 90 countries, AbitibiBowater is also among the world's largest recyclers of newspapers and magazines, and has more third-party certified sustainable forest land than any other company in the world. AbitibiBowater's shares trade under the stock symbol ABH on both the New York Stock Exchange and the Toronto Stock Exchange.
Forward-Looking Statements --------------------------
Statements in this report that are not reported financial results or other historical information are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. They include, for example, statements about the Company's anticipated timetable for closing the transactions and its future plans regarding continued refinancing relating to its previously announced refinancing plans. Forward-looking statements may be identified by the use of forward-looking terminology such as the words "will" and "expect" and other terms with similar meaning indicating possible future events or potential impact on the business or other stakeholders of the Company and its subsidiaries. The reader is cautioned not to place undue reliance on these forward-looking statements, which are not guarantees of future performance. These statements are based on management's current assumptions, beliefs and expectations, all of which involve a number of business risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties include, but are not limited to, the ability to obtain additional new financing on terms satisfactory to the Company and Abitibi-Consolidated or at all, the condition of the U.S. credit and capital markets generally, worsening industry conditions and the ability to meet the required closing conditions.
Additional factors are detailed from time to time in the Company's filings with the Securities and Exchange Commission (SEC) and the Canadian securities regulatory authorities, including those factors contained in the Company's Annual Report on Form 10-K, as amended, for year ended December 31, 2007, each under the caption "Risk Factors." All forward-looking statements in this report are expressly qualified by information contained in the Company's filings with the SEC and the Canadian securities regulatory authorities. The Company disclaims any obligation to update or revise any forward-looking information.
