AbitibiBowater Closes Sale of Ontario Hydro Assets for C$300 Million
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AbitibiBowater, Montreal, Que., Canada, reports that it has closed the sale of its 75% indirect interest in ACH Limited Partnership (ACH) to a consortium formed by a major Canadian institutional investor and a private Canadian renewable energy company. As previously announced, cash proceeds for AbitibiBowater's interest will amount to approximately C$300 million, $185 million of which the company intends to use to redeem a portion of outstanding 10.25% senior secured notes due 2018, while the balance of proceeds will be used for general corporate purposes.
"With the sale of our interest in ACH, the company is able to pay off a considerable amount of debt and further improve our financial flexibility. We will continue to focus on reducing AbitibiBowater's debt, and this represents an important step forward in line with our commitment," said Richard Garneau, president and CEO.
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