Date Closed

December 9, 2009

Lead Office

Québec City

Value

615.00 Million CAD

On December 9, 2009, AbitibiBowater Inc. announced the closing of the series of transactions resulting in the sale of its 60% indirect interest in the 335 MW hydroelectric facility currently owned and operated by Manicouagan Power Company (MPCo) to Hydro-Québec for gross proceeds of C$615 million.
 
The Company will use the proceeds from the sale of its interest in MPCo in the manner specified in the orders of the Superior Court of Quebec related to the sale, including:
 
    -   The repayment of all amounts outstanding under the US$100 million Super Priority Senior Secured Debtor-In-Possession (DIP) Credit Facility.
    -   A C$200 million partial repayment of amounts due under its senior secured notes.
    -   An amount of C$282 million set aside temporarily with a wholly-owned unlimited liability Company subsidiary which may lend interest free, subject to certain approvals, up to C$230 million to the Abitibi-Consolidated subsidiary.
    -   The repayment of certain transaction costs, indemnities and holdbacks as specified by the orders.
 
The effect of this series of transactions is to provide the Company's Abitibi-Consolidated subsidiary with additional net liquidity of approximately C$168 million. The Company has also signed a power supply agreement with Hydro-Québec's distribution division for the supply of electricity to the Company's Baie-Comeau, Québec paper mill.

AbitibiBowater, headquartered in Montréal, Québec, produces a wide range of newsprint, commercial printing papers, market pulp and wood products.

McCarthy Tétrault LLP represented AbitibiBowater, with a team led by Marc Dorion.