AbitibiBowater Announces Debt Reduction Initiatives
July 1, 2011 (Press Release) - AbitibiBowater announced [yesterday] that, with the proceeds from the sale of its 75% indirect interest in ACH Limited Partnership, the Company recently redeemed approximately $270 million of its debt. With these disbursements, AbitibiBowater's total debt has been reduced to a face amount of approximately $670 million.
"These recent actions are an important milestone in AbitibiBowater's focus on reducing its debt and associated interest burden," stated Richard Garneau, President and Chief Executive Officer. "Debt reduction is a fundamental part of our strategy to reduce fixed costs and improve the Company's financial position and competitiveness."
The following three debt repayments were made during June 2011:
- $94 million principal at a redemption price of 105%, together with accrued interest, of the $850 million, 10.25% senior secured notes due 2018;
- $85 million principal at a redemption price of 103%, together with accrued interest, of the $850 million, 10.25% senior secured notes due 2018; and
- $90 million principal at par, together with accrued interest, of the Augusta Newsprint Company promissory note - repaid in full.
AbitibiBowater is a global leader in the forest products industry, producing a diverse range of products, including newsprint, commercial printing papers, market pulp and wood products. The Company owns or operates 18 pulp and paper mills and 24 wood products facilities located in the United States, Canada and South Korea. Marketing its products in close to 90 countries, AbitibiBowater is also among the largest recyclers of old newspapers and magazines in North America, and has third-party certified 100% of its managed woodlands to sustainable forest management standards.
SOURCE: AbitibiBowater Inc.