Business News
Domtar announces expiration of tender offer for its 7.875% notes due 2011
Thursday 18. June 2009 - Domtar Corporation (NYSE/TSX: UFS) today announced that the tender offer for up to $400 million of its outstanding 7.875% Notes due 2011 (CUSIP # 257559AA2) (the "Notes") expired at 12:00 Midnight, New York City Time, on Tuesday, June 16, 2009 (the "Expiration Date").
As of the Expiration Date, approximately $431 million aggregate principal amount of the Notes, representing approximately 80% of the outstanding Notes, had been validly tendered and not withdrawn. Because the aggregate principal amount of Notes tendered has exceeded the tender cap of $400 million, the Company will purchase Notes on a pro rata basis among tendering holders of Notes. The Company expects to accept Notes for purchase today with a proration ratio of approximately 93%.
The complete terms and conditions of the tender offer are described in the Offer to Purchase, dated May 19, 2009, of the Company (the “Offer to Purchase”). The Company has engaged J.P. Morgan Securities Inc. and Morgan Stanley & Co. Incorporated to act as dealer managers in connection with the tender offer. Questions regarding the tender offer may be directed to J.P. Morgan at (212) 270-1477 (collect) or (800) 245-8812 (U.S. toll-free) or to Morgan Stanley at (212) 761-1941 (collect) or (800) 624-1808 (U.S. toll-free). Requests for documentation may be directed to Global Bondholder Services Corporation, the information agent and depositary for the tender offer, at (212) 430-3774 (for banks and brokers) or (866) 470-3700 (U.S. toll-free).
This press release is neither an offer to purchase nor a solicitation of an offer to sell the Notes or any other security. The tender offer is being made only by the Offer to Purchase and the related letter of transmittal. The offer is not being made to noteholders in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction. In any jurisdiction in which the offer is required to be made by a licensed broker or dealer, it shall be deemed to be made by the dealer managers on behalf of the Company.