Business News

Domtar announces senior notes offering

Wednesday 03. June 2009 - Domtar Corporation (NYSE/TSX: UFS) announced today a proposed offering of $250 million aggregate principal amount of senior notes due 2017. The Company intends to use the net proceeds from the offering to fund any portion of the purchase price of the 7.875% Notes due 2011 tendered and accepted by the Company for purchase pursuant to its previously announced tender offer not funded with cash on hand and, to the extent there are remaining proceeds, for general corporate purposes.

J.P. Morgan Securities Inc. and Morgan Stanley & Co. Incorporated are acting as the joint book-running managers of the offering.
The notes are being offered pursuant to the Company’s registration statement on Form S-3 filed with the Securities and Exchange Commission (SEC) on June 3, 2009. The proposed offering will be made only by means of a prospectus. The preliminary prospectus may be obtained on the SEC website at www.sec.gov. Alternatively, a copy of the prospectus for the offering can be obtained from J.P. Morgan, Syndicate Desk, 270 Park Avenue, 8th floor, New York, New York 10017, or by telephone at (212) 270-1477 (collect) or (800) 245-8812 (U.S. toll-free); or from Morgan Stanley, Prospectus Department, 180 Varick Street, 2nd floor, New York, New York 10014, or by telephone at (212) 761-1941 (collect) or (800) 624-1808 (U.S. toll-free).
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any offer or sale of the senior notes in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any jurisdiction. Any offer, solicitation or sale will be made only by means of the prospectus.