July 12, 2021 By P&PC Staff
Paper Excellence has confirmed it will receive $1.95 billion of financing from financial institutions towards the purchase of Domtar.
The $1.95 billion in financing consists of a five-year senior secured asset-based revolving facility in the aggregate principal amount of $400 million, a seven-year senior secured term loan facility in an aggregate principal amount of $775 million, and a seven-year senior secured bridge facility in an aggregate principal amount of $775 million.
The company announced on May 11 that it will acquire all of the issued and outstanding shares of Domtar common stock for $55.50 per share, in cash, for a total purchase price of approximately $3 billion.
The transaction is still expected to close in the second half of this year, subject to Domtar shareholder approval and closing conditions. The latest date in the merger agreement is Feb. 10, 2022.
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