Consumables

Resolute Announces Further Debt Reduction and Share Repurchase Milestone

Monday 10. September 2012 - Resolute Forest Products Inc. (NYSE: RFP) (TSX: RFP) announced today that it would take advantage of its strong liquidity position to redeem an additional $85 million of its 10.25% senior secured notes due 2018. The Company also announced that it had now repurchased 3.7 million shares of its common stock under the existing $100 million share repurchase program.

“I’m pleased to say that we have now repurchased more shares than we issued to acquire Fibrek,” stated Richard Garneau, president and chief executive officer. “Today’s announcements demonstrate our commitment to disciplined capital management – we are using our strong financial position to reduce debt, while also returning cash to shareholders. We will continue to manage capital with the utmost discipline, carefully balancing initiatives to return cash to shareholders with other considerations, such as pursuing sound capital investments and opportunities to further increase Resolute’s earnings power.”
The Company will use available cash for the redemption of $85 million in principal amount of the notes, plus accrued and unpaid interest. The redemption is scheduled to occur on October 10, at a redemption price of 103%. Following the redemption, the aggregate face amount of the notes will be approximately $500 million.