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ABITIBI-PRICE TO REPAY LONG-TERM DEBT

 TORONTO, Feb. 9 /PRNewswire/ -- Abitibi-Price Inc. (NYSE: ABY) announced today that it has agreed, subject to regulatory approvals, to issue on or about March 4, 1993, up to $150 million of convertible debentures subordinated to all debt, including trade debt. The debentures will be convertible into common shares of Abitibi-Price at a conversion price of $15 per common share. The debentures will bear an annual interest rate of 7.85 percent payable semi-annually and will mature on March 1, 2003. Upon maturity or redemption, Abitibi-Price may at its option, subject to all regulatory requirements, elect to satisfy the principal of the debentures with its common shares based on 95 percent of their trading price on The Toronto Stock Exchange for a specified period prior to repayment.
 The offering is being underwritten by a syndicate led by Nesbitt Thomson Inc. The other members of the syndicate are Gordon Capital Corporation, RBC Dominion Securities Inc., Wood Gundy Inc., Goepel Shields & Partners Inc., Burns Fry Limited, Midland Walwyn Capital Inc., Richardson Greenshields of Canada Limited, ScotiaMcLeod Inc., and Toronto-Dominion Securities Inc. Abitibi-Price will be filing shortly a short form preliminary prospectus with securities regulatory authorities.
 The proceeds from this issue will be used to repay long-term debt. Eileen Mercier, the company's chief financial officer, said, "As part of Abitibi-Price's priority to achieve financial flexibility, we will continue to maintain a strong balance sheet and improve our financial stability. This repayment of long-term debt will allow cash from operations to be used for value-enhancing investments in the future."
 Abitibi-Price, a major competitor in the global forest products industry, is a manufacturer and marketer of newsprint and uncoated groundwood papers. The company is a prominent distributor of office and information-processing products, as well as a converter of industrial goods and products for home, school and office use.
 SYMBOLS: A (Toronto, Montreal and Vancouver stock exchanges), ABY (New York Stock Exchange).
 -0- 2/9/93
 /CONTACT: Colin Fraser, treasurer, 416-369-6704; Eileen A. Mercier, senior vice-president - finance, 416-369-6718, both of Abitibi-Price/
 (ABY)


CO: Abitibi-Price Inc. ST: Ontario IN: PAP SU:

SH -- NY016 -- 4473 02/09/93 08:55 EST
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Publication:PR Newswire
Date:Feb 9, 1993
Words:352
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