Domtar Corporation Announces Termination of Cash Tender Offers for 4.400%, 6.750% and 6.250% Senior Notes, Redemption of 2022 Notes, and Repayment of Term Loan

Rhea-AI Summary

Domtar Corporation (NYSE: UFS) has terminated its cash tender offers for its 4.400% Senior Notes due 2022 and up to $300 million of its 6.750% Senior Notes due 2044 and 6.250% Senior Notes due 2042. The termination is unconditional, and all tendered notes will not be purchased, with instructions automatically revoked and notes returned to holders. Instead, Domtar will redeem all $300 million of the 2022 Notes and repay $294 million of outstanding debt under its Term Loan Agreement with CoBank, ACB.

Positive

• Domtar will redeem all $300 million aggregate principal amount of the 2022 Notes.
• The company is reducing its debt by repaying $294 million under its Term Loan Agreement with CoBank.

Negative

• Termination of cash tender offers indicates possible liquidity challenges or strategic shifts.
• No purchase of previously tendered notes could affect investor sentiment.

Domtar Corporation (the “Company” or “Domtar”) (NYSE: UFS), announced today the termination of its previously announced cash tender offers (each, an “Offer”, and collectively, the “Offers”) for (i) any and all of its 4.400% Senior Notes due 2022 (the “2022 Notes”) and (ii) up to a combined aggregate purchase price (including principal amount and related premium, but excluding accrued interest) of $300 million of its 6.750% Senior Notes due 2044 (the “2044 Notes”) and its 6.250% Senior Notes due 2042 (the “2042 Notes” and, together with the 2022 Notes and 2044 Notes, the “Notes,” and each a “series” of Notes).

The termination of the Offers is unconditional and takes immediate effect. All Notes tendered pursuant to the Offers will not be purchased. All instructions in respect of tendered Notes will be deemed to be revoked automatically and all Notes previously tendered and not withdrawn will be promptly returned to their respective Holders.

In lieu of the Offers, the Company announced today that it will redeem all of the $300 million aggregate principal amount of the 2022 Notes pursuant to the terms of the 2022 Notes and repay the $294 million of outstanding indebtedness under its Term Loan Agreement with CoBank, ACB, a farm credit bank.

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FAQ

What did Domtar announce regarding its cash tender offers?

Domtar announced the termination of its cash tender offers for its Senior Notes.

What will Domtar do instead of the terminated offers?

Domtar will redeem all $300 million of its 2022 Notes and repay $294 million of debt.

What is the stock symbol for Domtar Corporation?

The stock symbol for Domtar Corporation is UFS.

What happens to the notes that were tendered in the offers?

All tendered notes will not be purchased and will be returned to their respective holders.

What does the termination of cash tender offers indicate?

The termination may indicate liquidity challenges or a strategic shift for Domtar.