Domtar Corporation's Exchange Offer Expirations Announced
Montreal, Quebec, Canada, 15 November 2007 -- /PRNewswire/ -- Domtar Corporation announced today the expiration of its offers to exchange Domtar Inc.'s outstanding U.S. dollar denominated 7.875% Notes due 2011, 5.375% Notes due 2013, 7 1/8% Notes due 2015 and 9 1/2% Debentures due 2016 (collectively, the "Domtar Inc. U.S. Notes") for an equal principal amount of Domtar Corporation's newly issued notes of the corresponding series (the "Domtar Corp. Notes") and the related consent solicitations. The exchange offers and consent solicitations expired at midnight, Eastern Time, on 14 November 2007 (the "Expiration Date").
As of the expiration date,
(i) USD 599,752,000 or 99.96% of the outstanding principal amount of the 7.875% Notes,
(ii) USD 348,431,000 or 99.55% of the outstanding principal amount of the 5.375% Notes,
(iii) USD 399,723,000 or 99.93% of the outstanding principal amount of the 7 1/8 % Notes; and
(iv) USD 124,125,000 or 99.30% of the outstanding principal amount of the 9 1/2% Debentures had been validly tendered and not withdrawn in the exchange offers.
Domtar Corporation will accept all such Domtar Inc. U.S. Notes validly tendered and not withdrawn and will subsequently exchange these notes for new notes of Domtar Corporation as described in the prospectus and consent solicitation statement for the exchange offers. The settlement date is expected to be 19 November 2007.
In connection with the settlement of the exchange offers, holders of the Domtar Inc. U.S. Notes will receive a cash payment representing accrued and unpaid interest on Domtar Inc. U.S. Notes tendered by such holder up to, but not including, the settlement date and, if applicable, the early consent payment with respect to Domtar Inc. U.S. Notes validly tendered and not withdrawn by such holder before 5:00 p.m., Eastern Time, on 30 October 2007, the early consent date.
Domtar Corporation also announced today that Domtar Inc. did not receive the requisite votes in favor of the proposed debentureholders' resolutions to make certain amendments to the indentures governing Domtar Inc.'s outstanding Canadian dollar denominated 10% Debentures due 2011 and 10.85% Debentures due 2017 at the applicable meetings of holders of such Domtar Inc. Canadian debentures held on 14 November 2007. As a result, the early consent payment will not be payable to debentureholders with respect to duly completed proxies deposited before the early proxy time pursuant to the proxy solicitations and such debentures will remain outstanding.
Domtar Corporation filed a registration statement on Form S-4 (including a prospectus and consent solicitation statement and a debentureholder information circular/prospectus) with the SEC for the exchange offers and proxy solicitations to which this communication relates. These documents are available for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, contact the information agents for copies of the prospectus and consent solicitation statement and related documents by calling, in the United States (212) 430-3774 (banks and brokers) or (866) 470-3700 (toll free), and in Canada (888) 605-8384.
Domtar Corporation (NYSE/TSX: UFS) is the largest integrated producer of uncoated freesheet paper in North America and the second largest in the world based on production capacity. The company also manufactures papergrade pulp. The company designs, manufactures, markets, and distributes a wide range of business, commercial printing, publication, technical, and specialty papers and a full line 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 14,000 people. To learn more, visit www.domtar.com
Source: Domtar Corporation