UFS (NYSE, TSX)
MONTREAL, April 4 /CNW Telbec/ - Domtar Corporation (NYSE/TSX: UFS) today
announced that Domtar Inc., one of its principal operating subsidiaries, has
commenced a change of control offer for all U.S.$125,000,000 outstanding
principal amount of its 9 1/2% Debentures Due 2016 (CUSIP Number: 257561AT7).
This offer is being made solely to fulfill Domtar Inc.'s obligations under the
indenture governing the debentures, which requires that Domtar Inc. make an
offer to purchase the debentures following a "change of control triggering
event" (as defined in the indenture). A "change of control triggering event"
occurred on March 7, 2007 as a result of (i) a person becoming the holder of
more than 35% of the outstanding common shares of Domtar Inc. pursuant to the
combination of the fine paper business and related assets of Weyerhaeuser
Company with Domtar Inc. and (ii) a rating decline within 90 days after the
public announcement of such transactions as a result of a change in
methodology by Moody's Investor Services for rating North American forest
As required by the indenture, the purchase price for each $1,000
principal amount of debentures tendered and accepted for payment pursuant to
the offer is $1,010, which is equal to 101% of the principal amount of the
debentures, plus accrued and unpaid interest on the principal amount tendered
to, but not including, the payment date.
The offer will expire at 12:00 midnight, New York City time, on Friday,
May 4, 2007, unless extended or earlier terminated. The terms and conditions
of the offer, including the conditions to Domtar Inc. 's obligation to accept
the debentures tendered and pay the purchase price for them, are set forth in
a Notice of Change of Control and Offer to Purchase dated April 4, 2007.
For information regarding the change of control offer, please contact
Georgeson Inc., the information agent for the offer, at 1-800-445-1790
(toll free) or 212-440-9800.
This announcement does not constitute an offer or solicitation to
purchase with respect to the debentures. The change of control offer is being
made only by means of the Notice of Change of Control and Offer to Purchase.
Domtar Corporation (NYSE/TSX: UFS) is the largest integrated producer of
uncoated freesheet paper and one of the largest manufacturers of papergrade
market pulp in North America. The Company designs, manufactures, markets and
distributes a wide range of business, commercial printing, publication as well
as technical and specialty papers with recognized brands such as First
Choice (R), Domtar Microprint(R), Windsor Offset(R), Cougar(R) as well as its
full line of environmentally and socially responsible papers, Domtar
EarthChoice (R). Domtar owns and operates Domtar Distribution Group, an
extensive network of strategically-located paper distribution facilities.
Domtar also produces lumber and other specialty and industrial wood products.
The Company employs nearly 14,000 people. To learn more, visit www.domtar.com.
For further information:
For further information: Media relations: Christian Tardif, Senior
Manager, Corporate and Financial Communications, (514) 848-5515,
email@example.com; Investor relations: Pascal Bossé, Manager,
Investor Relations, (514) 848-5938, firstname.lastname@example.org