UFS (NYSE, TSX)
MONTREAL, Dec. 20 /CNW Telbec/ - Domtar Inc., a wholly owned subsidiary
of Domtar Corporation, announced today, following the Early Consent Deadline
on December 17, 2007 at 5:00 p.m. (EST), the successful completion of the
first phase of its previously announced Offers to purchase for cash any and
all of its outstanding Canadian dollar denominated 10% Debentures due 2011 and
10.85% Debentures due 2017.
The depositary, Computershare Investor Services Inc., has advised Domtar
Inc. that CDN$79,795,000 aggregate principal amount of the 10% Debentures
representing approximately 97.31% of those outstanding, and CDN$74,352,000
aggregate principal amount of the 10.85% Debentures representing approximately
99.25% of those outstanding were validly tendered and not withdrawn prior to
the Early Consent Deadline. The Company accepted for purchase and payment
today all of such validly tendered Debentures. As a result, the supplements to
the respective Indentures governing the Debentures reflecting the requested
amendments thereto were also entered into today.
Holders who validly deposit their Debentures under the Offers and deliver
their Consent to the Proposed Amendments after the Early Consent Deadline and
prior to the Expiration Time, which is currently scheduled to be 5:00 pm,
Montreal time, on January 3, 2008, unless extended or earlier terminated, will
receive the Purchase Price, which will be payable promptly after the
Expiration Time on the Final Settlement Date.
Assuming a Final Settlement Date of January 7, 2008, the Purchase Price
(i) each $1,000 principal amount of 10% Debentures validly tendered
after the Early Consent Deadline, will be $1,111.86; and
(ii) each $1,000 principal amount of 10.85% Debentures validly tendered
after the Early Consent Deadline, will be $1,353.60.
Domtar Inc. will also pay accrued and unpaid interest from the last
interest payment date to, but not including, the Final Settlement Date on
those Debentures accepted for payment pursuant to the Offers.
Scotia Capital has been retained by Domtar Inc. to act as Dealer Manager
and Solicitation Agent for the Offers and Consent Solicitations. Domtar Inc.
has also retained Georgeson Shareholder Communications Canada Inc. to act as
information agent and Computershare Investor Services Inc. to act as
depositary in connection with the Offers and the Consent Solicitations.
For copies of the Offer to Purchase and Consent Solicitation Statement
and the related Letter of Transmittal and Consent please contact Georgeson at
1-888-605-8384. Holders of Debentures in bearer form are advised to contact
Computershare at 1-800-245-4053 for instructions regarding how to deposit
their Debentures. For further inquiries, please contact Scotia Capital at
416-863-7776 or 1-800-372-3930 (for U.S. residents)
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.
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. We
disclaim any intention to, and undertake no obligation to, update or revise
any forward-looking statements contained in this press release.
For further information:
For further information: Media Relations: Michel A. Rathier, (514)
848-5103; Investor relations: Pascal Bossé, (514) 848-5938