MONTREAL, Sept. 10, 2012 /CNW Telbec/ - Resolute Forest Products Inc.
(NYSE: RFP) (TSX: RFP) announced today that it would take advantage of
its strong liquidity position to redeem an additional $85 million of
its 10.25% senior secured notes due 2018. The Company also announced
that it had now repurchased 3.7 million shares of its common stock
under the existing $100 million share repurchase program.
"I'm pleased to say that we have now repurchased more shares than we
issued to acquire Fibrek," stated Richard Garneau, president and chief
executive officer. "Today's announcements demonstrate our commitment to
disciplined capital management - we are using our strong financial
position to reduce debt, while also returning cash to shareholders. We
will continue to manage capital with the utmost discipline, carefully
balancing initiatives to return cash to shareholders with other
considerations, such as pursuing sound capital investments and
opportunities to further increase Resolute's earnings power."
The Company will use available cash for the redemption of $85 million in
principal amount of the notes, plus accrued and unpaid interest. The
redemption is scheduled to occur on October 10, at a redemption price
of 103%. Following the redemption, the aggregate face amount of the
notes will be approximately $500 million.
About Resolute Forest Products
Resolute Forest Products is a global leader in the forest products
industry with a diverse range of products, including newsprint,
commercial printing papers, market pulp and wood products. The Company
owns or operates 21 pulp and paper mills and 22 wood products
facilities in the United States, Canada and South Korea. Marketing its
products in more than 90 countries, Resolute has third-party certified
100% of its managed woodlands to sustainable forest management
standards. The shares of Resolute Forest Products trade under the stock
symbol RFP on both the New York Stock Exchange and the Toronto Stock
Resolute and other member companies of the Forest Products Association
of Canada, as well as a number of environmental organizations, are
partners in the Canadian Boreal Forest Agreement. The group works to
identify solutions to conservation issues that meet the goal of
balancing equally the three pillars of sustainability linked to human
activities: environmental, social and economic. Resolute is also a
member of the World Wildlife Fund's Climate Savers program, in which
businesses establish ambitious targets to voluntarily reduce greenhouse
gas emissions and work aggressively toward achieving them.
Cautionary Statements Regarding Forward-looking Information
Statements in this press release that are not reported financial results
or other historical information of Resolute Forest Products Inc. are
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Forward-looking statements
may be identified by the use of forward-looking terminology such as the
words "should," "would," "could," "will," "may," "expect," "believe,"
"anticipate," "attempt," "project" and other terms with similar meaning
indicating possible future events or potential impact on our business
or Resolute's shareholders.
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. The potential risks and uncertainties that could
cause Resolute's actual future financial condition, results of
operations and performance to differ materially from those expressed or
implied in the presentation referred to above include, but are not
limited to, the potential risks and uncertainties set forth under the
heading "Risk Factors" in Part I, Item 1A of Resolute's annual report
on Form 10-K for the year ended December 31, 2011, filed with the
United States Securities and Exchange Commission and the Canadian
securities regulatory authorities.
All forward-looking statements in this press release are expressly
qualified by the cautionary statements above and in Resolute's other
filings with the SEC and the Canadian securities regulatory
authorities. Resolute disclaims any obligation to publicly update or
revise any forward-looking information, whether as a result of new
information, future events or otherwise, except as required by law.
SOURCE: RESOLUTE FOREST PRODUCTS INC.
For further information:
Rémi G. Lalonde
Vice President, Investor Relations
Media and Others
Vice President, Corporate Communications,
Sustainability and Government Affairs