UFS (NYSE, TSX)
MONTREAL, Nov. 15 /CNW Telbec/ - Domtar Corporation announced today the
expiration of its offers to exchange Domtar Inc.'s outstanding U.S. dollar
denominated 7.875% Notes due 2011, 5.375% Notes due 2013, 7 1/8% Notes due
2015 and 9 1/2% Debentures due 2016 (collectively, the "Domtar Inc. U.S.
Notes") for an equal principal amount of Domtar Corporation's newly issued
notes of the corresponding series (the "Domtar Corp. Notes") and the related
consent solicitations. The exchange offers and consent solicitations expired
at 12:00 midnight, New York City time, on November 14, 2007 (the "Expiration
As of the Expiration Date, (i) US $599,752,000 or 99.96% of the
outstanding principal amount of the 7.875% Notes, (ii) US $348,431,000 or
99.55% of the outstanding principal amount of the 5.375% Notes,
(iii) US $399,723,000 or 99.93% of the outstanding principal amount of the
7 1/8 % Notes; and (iv) US $124,125,000 or 99.30% of the outstanding principal
amount of the 9 1/2% Debentures had been validly tendered and not withdrawn in
the exchange offers. Domtar Corporation will accept all such Domtar Inc. U.S.
Notes validly tendered and not withdrawn and will subsequently exchange these
notes for new notes of Domtar Corporation as described in the prospectus and
consent solicitation statement for the exchange offers. The settlement date is
expected to be November 19, 2007.
In connection with the settlement of the exchange offers, holders of the
Domtar Inc. U.S. Notes will receive a cash payment representing accrued and
unpaid interest on Domtar Inc. U.S. Notes tendered by such holder up to, but
not including, the settlement date and, if applicable, the early consent
payment with respect to Domtar Inc. U.S. Notes validly tendered and not
withdrawn by such holder prior to 5:00 p.m., New York City time, on
October 30, 2007, the early consent date.
Domtar Corporation also announced today that Domtar Inc. did not receive
the requisite votes in favor of the proposed debentureholders' resolutions to
make certain amendments to the indentures governing Domtar Inc.'s outstanding
Canadian dollar denominated 10% Debentures due 2011 and 10.85% Debentures due
2017 at the applicable meetings of holders of such Domtar Inc. Canadian
debentures held on November 14, 2007. As a result, the early consent payment
will not be payable to debentureholders with respect to duly completed proxies
deposited prior to the early proxy time pursuant to the proxy solicitations
and such debentures will remain outstanding.
Domtar Corporation filed a registration statement on Form S-4 (including
a prospectus and consent solicitation statement and a debentureholder
information circular/prospectus) with the SEC for the exchange offers and
proxy solicitations to which this communication relates. You should read the
prospectus and consent solicitation statement or the debentureholder
information circular/prospectus, as applicable, in that registration statement
and the exhibits Domtar Corporation has filed with the SEC, because they
contain important, more complete information about Domtar Corporation, Domtar
Inc. and the exchange offers or proxy solicitations. You may get these
documents for free by visiting EDGAR on the SEC Web site at www.sec.gov.
Alternatively, the information agents will arrange to send you the prospectus
and consent solicitation statement and related documents if you request it by
calling, in the U.S. (212) 430-3774 (banks and brokers) or (866) 470-3700
(toll free), and in Canada (888) 605-8384.
All statements in this press release that are not based on historical
fact are "forward-looking statements". While management has based any
forward-looking statements contained herein on its current expectations, the
information on which such expectations were based may change. These
forward-looking statements rely on a number of assumptions concerning future
events and are subject to a number of risks, uncertainties, and other factors,
many of which are outside of our control that could cause actual results to
materially differ from such statements. Such risks, uncertainties, and other
factors include, but are not necessarily limited to, those set forth under the
captions "Forward-Looking Statements" and "Risk Factors" of the prospectuses
contained in the registration statement on Form S-4 filed with the SEC.
Furthermore, the ability to complete the offerings referred to in this
press release is dependent on the state of the markets at the time of the
offerings. Accordingly, investors should not place any reliance on
forward-looking statements as a prediction of actual results. We disclaim any
intention to, and undertake no obligation to, update or revise any
forward-looking statements contained in this press release.
Domtar Corporation (NYSE/TSX: UFS) is the largest integrated producer of
uncoated freesheet paper in North America and the second largest in the world
based on production capacity, and is also a manufacturer of papergrade pulp.
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: Michel A. Rathier, (514)
848-5103; Investor Relations: Pascal Bossé, (514) 848-5938