Bowater Announces Debt Tender Offer.GREENVILLE, S.C.--(BUSINESS WIRE)--Nov. 19, 1998--Bowater Pulp and Paper Canada Inc. (BPPC BPPC Banque Populaire Provençale et Corse BPPC Blizzard Power Personal Computer ), a subsidiary of Bowater Incorporated (NYSE NYSE See: New York Stock Exchange :BOW), today announced the commencement of an offer to purchase its outstanding 10.25% Debentures that are due 2003 and have a face value of $72.3 million. The purchase price for the tender will be determined by using a yield to maturity of the 5.50% U.S. Treasury U.S. Treasury Created in 1798, the United States Department of the Treasury is the government (Cabinet) department responsible for issuing all Treasury bonds, notes and bills. Some of the government branches operating under the U.S. Treasury umbrella include the IRS, U.S. Note due January 31, 2003, at 10:00 a.m. EST EST electroshock therapy. EST abbr. electroshock therapy , on December 15, 1998, plus a fixed spread of 100 basis points. The offer to purchase the Debentures is conditional upon BPPC successfully soliciting consents from registered holders of the Debentures for an amendment to eliminate a covenant limiting the company's ability to pay cash dividends. Elimination of this covenant will provide for more flexible management of cash across the organization, while also reducing interest costs associated with this high coupon debt. The offer is scheduled to expire on December 17, 1998, at 5:00 p.m. EST. J.P. Morgan & Co. will serve as the exclusive dealer manager of the offering and Morrow & Co. Inc. will serve as the information agent. Bowater Pulp and Paper Canada Inc. is a subsidiary of Bowater Incorporated, which is headquartered in Greenville, S.C. Bowater Incorporated is a global leader in newsprint. In addition, Bowater Incorporated makes coated and uncoated groundwood papers, bleached kraft pulp and lumber products. It has 11 pulp and paper mills in the United States, Canada and Korea. These operations are supported by more than 4 million acres of timberlands owned in the United States and Canada and more than 14 million acres of timber cutting rights in Canada. Bowater Incorporated is one of the world's largest users of recycled newspapers and magazines. Bowater Incorporated common stock is listed on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. , U.S. regional exchanges and the London Stock Exchange London Stock Exchange London marketplace for securities. It was formed in 1773 by a group of stockbrokers who had been doing business informally in local coffeehouses. . A special class of stock exchangeable into Bowater common stock is listed on the Toronto and Montreal exchanges (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). and ME: BWX). All amounts are in U.S. dollars. |
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