AbitibiBowater Announces Further Debt Reduction
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AbitibiBowater Inc., Montreal, Que., Canada, this week announced that it will take advantage of its strong liquidity position to redeem an additional $85 million of its debt. The redemption will reduce AbitibiBowater's total debt to a face amount of approximately $586 million. This step is in addition to the approximately $270 million of debt the company redeemed this past June.
"Today's announcement underscores our commitment to reduce debt and the associated interest burden at every opportunity," Richard Garneau, president and CEO, said. "Debt reduction remains a key part of our strategy to decrease fixed costs and improve the company's financial position and competitiveness."
The company will use available cash to carry out the redemption of $85 million in principal amount of its 10.25% senior secured notes due 2018, plus accrued and unpaid interest. The redemption is scheduled to occur on November 4, 2011, at a redemption price of 103%.
AbitibiBowater and other member companies of the Forest Products Association of Canada, as well as a number of environmental organizations, are partners in the Canadian Boreal Forest Agreement. The group works to identify solutions to conservation issues that meet the goal of balancing the three pillars of sustainability linked to human activities—economic, social, and environmental.
AbitibiBowater owns or operates 18 pulp and paper mills and 24 wood products facilities located in the U.S., Canada, and South Korea.
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