Domtar Announces Redemption of 2022 Notes

Rhea-AI Summary

Domtar Corporation (NYSE: UFS) has announced the redemption of $300 million of its 4.40% Notes due 2022, which represents all outstanding notes. The redemption price will be at 100% of the principal, plus accrued and unpaid interest up to the redemption date on April 8, 2021, along with a calculated make-whole premium. Registered holders will receive a notice regarding the redemption on or about March 8, 2021. Payments will be facilitated through The Bank of New York Mellon and DTC for relevant holders.

Positive

• Redemption of $300 million in 4.40% Notes indicates a proactive debt management strategy.
• Payment of accrued interest and make-whole premium shows commitment to timely financial obligations.

Negative

• None.

Domtar Corporation (the “Company” or “Domtar”) (NYSE: UFS), today announced that it has elected to redeem $300 million in aggregate principal amount of its 4.40% Notes due 2022, representing all of the notes outstanding. The notes will be redeemed at a redemption price of 100 percent of the principal amount, plus accrued and unpaid interest, as well as a make-whole premium. The accrued interest will be paid for the period from April 1, 2021 up to, but excluding, the redemption date of April 8, 2021. The make-whole premiums will be calculated three days prior to redemption in accordance with the terms of the indenture governing the notes.

The terms of the redemption are described in the notice of redemption to be sent to registered holders on or about March 8, 2021. Notes to be redeemed are to be surrendered to The Bank of New York Mellon, as trustee and paying agent, in exchange for the payment of the redemption price. Holders who hold their notes through The Depository Trust Company, or DTC, will receive payment through DTC.

About Domtar

Domtar is a leading provider of a wide variety of fiber-based products including communication, specialty and packaging papers, market pulp and airlaid nonwovens. With approximately 6,600 employees serving more than 50 countries around the world, Domtar is driven by a commitment to turn sustainable wood fiber into useful products that people rely on every day. Domtar’s annual sales are approximately $3.7 billion, and its common stock is traded on the New York and Toronto Stock Exchanges. Domtar’s principal executive office is in Fort Mill, South Carolina. To learn more, visit www.domtar.com.

Forward-Looking Statements

Certain statements contained in this press release, the information incorporated herein by reference, and other written and oral statements made from time to time by us or on our behalf are based on current projections about operations, industry conditions, financial condition, and liquidity, may not relate strictly to historical or current facts and may contain forward-looking statements that reflect our current views with respect to future events and financial performance. As such, they are considered “forward-looking statements” which provide current expectations or forecasts of future events. Such statements can be identified by the use of terminology such as “anticipate”, “believe”, “expect”, “intend”, “aim”, “target”, “plan”, “continue”, “estimate”, “project”, “may”, “will”, “should” and similar expressions. These forward-looking statements should be considered with the understanding that such statements involve a variety of risks and uncertainties, known and unknown, and may be affected by inaccurate assumptions. Consequently, no forward-looking statement can be guaranteed and actual results may vary materially. Many risks, contingencies and uncertainties could cause actual results to differ materially from our forward-looking statements.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210308005917/en/

FAQ

What is the total amount Domtar is redeeming in notes?

Domtar is redeeming $300 million in 4.40% Notes due 2022.

When will the redemption of Domtar's notes take place?

The redemption will take place on April 8, 2021.

What is the redemption price for Domtar's Notes due 2022?

The redemption price is 100% of the principal amount plus accrued and unpaid interest.

Who will process the payments for the redeemed notes?

The Bank of New York Mellon will process the payments as the trustee and paying agent.

When will registered holders receive the notice of redemption for Domtar's notes?

Registered holders will receive the notice on or about March 8, 2021.