ABITIBIBOWATER GETS NEW FINANCING.Newsprint maker AbitibiBowater Inc. of Montreal said last week that it had successfully refinanced debt that was scheduled to mature this year and next and that it sidestepped the insolvency of its Abitibi-Consolidated subsidiary. "Our efforts to complete the necessary refinancing were complex in light of the current turmoil in the credit markets," Executive Chairman John Weaver
John Weaver (July 21, 1673 – September 24, 1760) was a dancer and choreographer and is commonly known as the father of English said in a statement. The four-step transaction included the private placement of $US413 million in 13-3/4 percent senior secured notes due 2011, a $400 million 364-day senior secured loan, the private placement of $350 million of eight percent convertible notes due in 2013, and a private exchange offer of $453 million in new senior unsecured notes and cash. The company will be required to pay down $50 million of the 13-3/4 percent notes from the proceeds of the previously announced sale of its facility at Snowflake, Ariz. In other AbitibiBowater news, the company's shares were downgraded from "neutral" to "underperform" on Tuesday by the stock brokerage D.A. Davidson & Co. of Great Falls Great Falls, city (1990 pop. 55,097), seat of Cascade co., N central Mont., second largest city in the state, at the confluence of the Missouri and Sun rivers and near the falls that give the city its name; inc. 1888. , Mont., citing the refinancing of debt as its rationale. The firm BMO BMO Bank of Montreal (Canada) BMO Before Market Open BMO Biometrics Management Office BMO Ballistic Missile Office BMO British Mathematical Olympiad BMO Balkan Mathematical Olympiad BMO Business Management Office Capital resumed coverage on the company on Friday, with a "market perform" rating and a target of $14 per share; the company's shares closed at $12.78 on Friday, down nine cents, week-over-week. Further, the debt rating agency DBRS DBRS Dominion Bond Rating Service of Toronto on Friday downgraded its ratings of AbitibiBowater's combined debt from BB to B, with a "negative" trend. The company said the strength of the Canadian dollar Noun 1. Canadian dollar - the basic unit of money in Canada; "the Canadian dollar has the image of loon on one side of the coin" loonie dollar - the basic monetary unit in many countries; equal to 100 cents and the weakness of the North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. newsprint market contributed to the downgrade. A bullet may have been dodged with the potential insolvency of Abitibi-Consolidated, but it's not clear that the war is anywhere near over. |
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