Oct. 19, 2010 (Canada NewsWire Group) --
TICKER SYMBOL
UFS (NYSE, TSX)
MONTREAL, Oct. 19 /CNW Telbec/ - Domtar Corporation (NYSE/TSX: UFS) today announced that it will redeem approximately US$135 million in aggregate principal amount of its 7.875% Notes due 2011, representing all of the notes outstanding of this series.
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 October 15, 2010 up to, but excluding, the redemption date of November 19, 2010. The make-whole premium 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 October 19, 2010.
Notes 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 Corporation (NYSE/TSX:UFS) is the largest integrated manufacturer
and marketer of uncoated freesheet paper in North America and the
second largest in the world based on production capacity, and is also a
manufacturer of papergrade, fluff and specialty pulp. The Company
designs, manufactures, markets and distributes a wide range of
business, commercial printing and publishing as well as converting and
specialty papers including recognized brands such as Cougar®, Lynx® Opaque Ultra, Husky® Opaque Offset, First Choice® and Domtar EarthChoice® Office Paper, part of a family of environmentally and socially
responsible papers. Domtar owns and operates Domtar Distribution Group,
an extensive network of strategically located paper distribution
facilities. The Company employs over 8,700 people. To learn more, visit
www.domtar.com.
Forward-Looking Statements
All statements in this press release that are not based on historical
fact are "forward-looking statements." While management has based any
forward-looking statements contained herein on its current
expectations, the information on which such expectations were based may
change. These forward-looking statements rely on a number of
assumptions concerning future events and are subject to a number of
risks, uncertainties, and other factors, many of which are outside of
our control that could cause actual results to materially differ from
such statements. Such risks, uncertainties, and other factors include,
but are not necessarily limited to, those set forth under the captions
"Forward-Looking Statements" and "Risk Factors" of the latest Annual
Report on Form 10-K filed with the SEC as updated by the Company's
latest Quarterly Report on Form 10-Q. Unless specifically required by
law, we assume no obligation to update or revise these forward-looking
statements to reflect new events or circumstances.
MEDIA AND INVESTOR RELATIONS
Pascal Bossé
Vice-President
Corporate Communications and Investor Relations
Tel.: 514-848-5938
