Resolute Announces Further Debt Reduction, Share Repurchase Milestone
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Resolute Forest Products Inc., Montréal, Qué., Canada, this week reported that it will take advantage of its strong liquidity position to redeem an additional $85 million of its 10.25% senior secured notes due 2018. The company also announced that it has now repurchased 3.7 million shares of its common stock under the existing $100 million share repurchase program.
"I'm pleased to say that we have now repurchased more shares than we issued to acquire Fibrek," said Richard Garneau, president and CEO. "Today's announcements demonstrate our commitment to disciplined capital management—we are using our strong financial position to reduce debt, while also returning cash to shareholders. We will continue to manage capital with the utmost discipline, carefully balancing initiatives to return cash to shareholders with other considerations, such as pursuing sound capital investments and opportunities to further increase Resolute's earnings power."
The company will use available cash for the redemption of $85 million in principal amount of the notes, plus accrued and unpaid interest. The redemption is scheduled to occur on October 10, at a redemption price of 103%. Following the redemption, the aggregate face amount of the notes will be approximately $500 million.
Resolute owns or operates 21 pulp and paper mills and 22 wood products facilities in the U.S., Canada, and South Korea.
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