Abitibi-Consolidated Prices Tender Offers for Up to US$500 Million of Notes
22 Março 2005 - 8:21PM
PR Newswire (US)
Abitibi-Consolidated Prices Tender Offers for Up to US$500 Million
of Notes A (TSX) ABY (NYSE) MONTREAL, March 22
/PRNewswire-FirstCall/ -- Abitibi-Consolidated Inc. ("Abitibi")
today announced that it and its subsidiary, Abitibi-Consolidated
Company of Canada ("ACCC," together with Abitibi, the "Company"),
have priced their cash tender offers to purchase any and all of
Abitibi's 8.30% notes due 2005 (the "2005 Notes") and up to US$150
million of ACCC's 6.95% notes due 2006 (the "2006 Notes", together
with the 2005 Notes, the "Notes"). Upon consummation of the tender
offers, the Company will pay US$1,015.96 for each $1,000 principal
amount of 2005 Notes purchased in the tender offers and US$1,038.82
for each $1,000 principal amount of 2006 Notes purchased in the
tender offers, if any, plus, in each case, accrued but unpaid
interest up to, but not including, the settlement date. The
purchase price for the 2005 Notes was determined by reference to a
fixed spread of 50 basis points over the bid side yield (as quoted
on Bloomberg Screen PX3 at 4:00 p.m. New York City time, today) of
the 1.50% U.S. Treasury Note due July 31, 2005, calculated to the
maturity date of the 2005 Notes. The purchase price for the 2006
Notes was determined by reference to a fixed spread of 75 basis
points over the bid side yield (as quoted on Bloomberg Screen PX4
at 4:00 p.m. New York City time, today) of the 2.875% U.S. Treasury
Note due November 30, 2006, calculated to the maturity date of the
2006 Notes. The purchase prices include an early tender premium of
$10.00 per $1,000 principal amount Notes that is payable only to
holders who validly tendered their Notes before 5:00 p.m., New York
City time, on March 16, 2005, (the "Early Tender Date") and did not
withdraw their tender. Holders who validly tender their Notes after
the Early Tender Date, but before 12:00 Midnight, New York City
time, on April 4, 2005 (the "Expiration Date"), and do not withdraw
their tender, will be paid the respective purchase price less the
early tender fee of $10.00 per $1,000 principal amount of Notes.
Holders not eligible to receive the early tender premium may
withdraw their tender at any time before the Expiration Date,
unless the tender offers are extended. Payment for tendered Notes
will be made in same day funds as soon as practicable after they
are accepted for payment, which in the case of 2005 Notes tendered
prior to the Early Tender Date is expected to be on or about March
29, 2005. The tender offers are conditioned on the satisfaction of
certain conditions, including the refinancing of a portion of
ACCC's existing indebtedness on terms and conditions satisfactory
to Abitibi. If any of the conditions of the offers described in the
Offer to Purchase, dated March 3, 2005 (the "Offer to Purchase"),
and the related Letter of Transmittal are not satisfied, neither
Abitibi nor ACCC will be obligated to accept for payment, purchase
or pay for the Notes, and may delay the acceptance for payment of
any tendered Notes, in each event, and may even terminate the
tender offers. The Company is not obligated to purchase any 2006
Notes tendered pursuant to the Offer to Purchase and the amount of
2006 Notes to be purchased, if any, is uncertain. If the principal
amount of 2006 Notes tendered and not validly withdrawn is less
than or equal to US$150 million, and the conditions to the tender
offers have otherwise been satisfied, the Company may choose not to
purchase any tendered 2006 Notes or may choose to purchase less
than all of the tendered 2006 Notes. Full details of the terms and
conditions of the tender offers are included in the Offer to
Purchase. Citigroup Global Markets Inc. ("Citigroup") and Credit
Suisse First Boston LLC ("CSFB") are the Dealer Managers for the
tender offers. Persons with questions regarding the offers should
contact the Dealer Managers: (i) Citigroup, toll-free at (800)
558-3745 or (ii) CSFB, toll free at (800) 820-1653, or the
Information Agent and Depositary, Global Bondholder Services
Corporation, toll-free at 866-470-4200. Requests for documents
including the Offer to Purchase may be directed to the Information
Agent and Depositary. 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 offers are made only pursuant to the
Offer to Purchase dated March 3, 2005. Statements in this press
release regarding the refinancing of indebtedness shall not
constitute an offer to sell or a solicitation of an offer to buy
any securities. Abitibi-Consolidated is a global leader in
newsprint and uncoated groundwood (value-added groundwood) papers
as well as a major producer of wood products, generating sales of
$5.8 billion in 2004. The Company owns or is a partner in 26 paper
mills, 22 sawmills, 5 remanufacturing facilities and 1 engineered
wood facility in Canada, the U.S., the U.K., South Korea, China and
Thailand. With approximately 14,000 employees, excluding its
PanAsia joint venture, Abitibi-Consolidated does business in
approximately 70 countries. Responsible for the forest management
of close to 18 million hectares of woodlands, the Company is
committed to the sustainability of the natural resources in its
care. Abitibi-Consolidated is also the world's largest recycler of
newspapers and magazines, serving 16 metropolitan areas in Canada
and the United States and 130 local authorities in the United
Kingdom, with 14 recycling centres in North America and approaching
20,000 Paper Retriever(R) and paper bank containers. This press
release contains forward-looking statements made pursuant to the
Private Securities Litigation Reform Act of 1995. Words such as
"anticipate," "estimate," "expect," and "projects" signify forward-
looking statements. Forward-looking statements are not guarantees
of future results and conditions but rather are subject to various
risks and uncertainties. These risks and uncertainties include, but
are not limited to, a risk that a sale of our notes might not be
completed and other risks, relevant factors and uncertainties
identified in our periodic filings with the Securities and Exchange
Commission. Should any risks or uncertainties develop into actual
events, these developments could have material adverse effects on
the Company's business, financial condition, and results of
operations. The Company assumes no obligation to update these
forward-looking statements. DATASOURCE: ABITIBI-CONSOLIDATED INC.
CONTACT: Contact: Investors & Financial Media: Lorne Gorber,
Director, Investor Relations & Financial Communications, (514)
394-2360,
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