UFS (NYSE, TSX)
(All figures in US dollars)
MONTREAL, June 3 /CNW Telbec/ - Domtar Corporation (NYSE/TSX: UFS) today announced that it had raised the tender cap from $250 million to $400 million (the "Tender Cap"), with respect to its previously announced tender offer for its outstanding 7.875% Notes due 2011 (CUSIP No. 257559AA2) (the "Notes"). As of the expiration of the early tender deadline at 5:00 p.m., New York City Time, on June 1, 2009, approximately $416 million aggregate principal amount of the Notes, representing approximately 77% of the outstanding Notes, had been validly tendered and not withdrawn. To the extent outstanding Notes are tendered in excess of the Tender Cap, the Company will purchase Notes that are validly tendered on a pro rata basis among tendering holders of Notes. The expiration date of the tender offer is 12:00 Midnight, New York City Time, June 16, 2009, unless extended or earlier terminated.
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.
Domtar Corporation (NYSE/TSX:UFS) is the largest integrated manufacturer and marketer of uncoated freesheet paper in North America and the second largest in the world based on production capacity, and is also a manufacturer of papergrade, fluff and specialty pulp. The Company designs, manufactures, markets and distributes a wide range of business, commercial printing and publication as well as converting and specialty papers including recognized brands such as Cougar(R), Lynx(R) Opaque, Husky(R) Offset, First Choice(R) and Domtar EarthChoice(R) Office Paper, part of a family of environmentally and socially responsible papers. Domtar owns and operates Domtar Distribution Group, an extensive network of strategically located paper distribution facilities. Domtar also produces lumber and other specialty and industrial wood products. The Company employs nearly 11,000 people. To learn more, visit www.domtar.com.
All statements in this press release that are not based on historical fact are "forward-looking statements." While management has based any forward-looking statements contained herein on its current expectations, the information on which such expectations were based may change. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of risks, uncertainties, and other factors, many of which are outside of our control that could cause actual results to materially differ from such statements. Such risks, uncertainties, and other factors include, but are not necessarily limited to, those set forth under the captions "Forward-Looking Statements" and "Risk Factors" of the latest Form 10-K filed with the SEC as periodically updated by subsequently filed Form 10-Q's. Unless specifically required by law, we assume no obligation to update or revise these forward-looking statements to reflect new events or circumstances.