AbitibiBowater Closes Sale of Its Stake in Ontario Hydro Assets
May 27, 2011 (Press Release) - AbitibiBowater announced today the closing of the sale of its 75% indirect interest in ACH Limited Partnership ("ACH LP") to a consortium formed by a major Canadian institutional investor and a private Canadian renewable energy company.
"With the sale of our interest in ACH LP, the Company is able to pay off a considerable amount of debt and further improve our financial flexibility. We will continue to focus on reducing AbitibiBowater's debt, and this represents an important step forward in line with our commitment," stated Richard Garneau, President and Chief Executive Officer.
As previously announced, cash proceeds for AbitibiBowater's 75% indirect interest will amount to approximately C$300 million, $185 million of which the Company intends to use to redeem a portion of outstanding 10.25% senior secured notes due 2018, while the balance of proceeds will be used for general corporate purposes. As part of the transaction, ACH LP will maintain its outstanding debt with the Caisse de depot et placement du Quebec with a face value of C$250 million.
See related story:
» AbitibiBowater Agrees to Sell Stake in Ontario Hydro Assets for $300 Million (2/14/2011)