On November 30, 2000, Domtar Inc. (Domtar) entered a new unsecured revolving credit facility for up to $500 million with a syndicate of Canadian financial institutions led by The Chase Manhattan Bank of Canada, as agent for the lenders. Chase Securities Inc. acted as sole arranger and book manager on the transaction. Proceeds of the financing will be used, in part, to refinance existing indebtedness.
Domtar Inc. is Canada’s largest producer of specialty and fine papers and is ranked seventh in North America. A leading producer of forest products in Eastern Canada, Domtar also owns 50 per cent of Norampac Inc., the largest Canadian producer of containerboard and corrugated containers. Domtar has annual sales of close to $4 billion, mostly in the United States, and 9,000 employees across North America.
Negotiations for Domtar Inc. in the transaction were handled by Christian Dubé, Senior Vice-President and Chief Financial Officer, Nick Willis, Assistant Treasurer and Yves Binette, Senior Legal Counsel. Domtar Inc. was represented by Charles J. Boivin and François Courteau at Ogilvy Renault. Chase was represented by Jeff Rogers and Brian Hilbers at McMillan Binch.