The Firm recently represented the underwriters in connection with Domtar Corporation’s registered public offering of $400 million aggregate principal amount of 10.75% Senior Notes due 2017. The notes are guaranteed by subsidiaries of Domtar, and were issued at a discount to yield 11.5%. J.P. Morgan Securities Inc. and Morgan Stanley & Co. Incorporated acted as joint book-running managers for the offering, which closed on June 9.
Concurrently with the notes offering, Domtar has made an offer to purchase a portion of its outstanding debt securities maturing in 2011. The offer to purchase included an early payment premium and was originally made for up to $250 million of the debt securities. The maximum amount was subsequently increased to $400 million. The offer to purchase is scheduled to expire on June 17. The Firm is also representing J.P. Morgan Securities Inc. and Morgan Stanley & Co. Incorporated in their capacities as dealer managers for the tender offer.
Domtar 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. Domtar designs, manufactures, markets and distributes a wide range of paper products for a variety of customers, including merchants, retail outlets, stationers, printers, publishers, converters and end-users.
The Simpson Thacher team included Walt Looney, Max Kirchner and Brandon Neal (Capital Markets); Vanessa Bressler (Credit); Sean Austin (Tax); Tim Mulvihill (Environmental); Rachel Berry and Wonda Quinn (Executive Compensation and Employee Benefits); Mindy Lok (Intellectual Property); Julie Levy (Labor); Justin Stern and Chad Atlas (Asbestos Litigation); Frank Giovinazzo (Real Estate); and Andrew Pagliughi (FINRA and Blue Sky). Paralegals Amy Craiger and Natalie Kone also provided valuable assistance.