January 2, 2019 By P&PC Staff
January 2, 2019 – Resolute Forest Products has completed the sale of its Catawba, South Carolina, paper and pulp mill to New-Indy Containerboard for US$300 million as of December 31, 2018.
The sale, announced on October 2, 2018, included $260 million in cash and the assumption of approximately $40 million of balance sheet liabilities, largely net pension benefit obligations.
“We are pleased to have completed the sale of the Catawba mill to New-Indy and wish the new team every success with its investment in the diversification of the mill’s operations,” says Yves Laflamme, president and chief executive officer of Resolute. “We want to thank our employees for their hard work and dedication toward this successful outcome, and are pleased that the community will continue to benefit from the mill’s economic and social impact.”
As previously disclosed, Resolute has agreed to use the majority of the proceeds from the asset sale to repurchase $225 million of its 5.875 per cent senior notes due in 2023, which the company says will improve financial flexibility.
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