Karta Halten B.V. Announces, Through Its Wholly-owned Subsidiary Pearl Merger Sub Inc., Offers to Purchase for Cash Any and All of Domtar Corporation’s 6.25% Senior Notes Due 2042 and 6.75% Senior Notes Due 2044 and Related Consent Solicitations
Summary
Concurrently, Domtar, announced today that it is soliciting (the “Domtar Consent Solicitations”) with respect to the applicable Series of Notes, consents of the Holders (the “Solicitation Change of Control Consents”) to, with respect to the Indenture, (a) (i) amend the definition of “Change of Control” to exclude the Merger and related transactions and (ii) expressly permit the Merger and related transactions and (b) amend the issuer reporting covenant to remove the requirement to file bondholder reports with the SEC and make other changes appropriate for a private company (collectively, the amendments contemplated in (a)(i) and (ii) and (b) are the “Change of Control Proposed Amendments”). Paper Excellence will pay or cause to be paid the Change of Control Consent Solicitation Payment for certain Notes, as set forth in the Offer to Purchase, on or promptly following the closing of the Merger. Holders who receive the Change of Control Consent Solicitation Payment will not be entitled to any accrued or unpaid interest. Paper Excellence believes in the enduring value of wood-based products in global markets and has built a large network of mills and chipping plants to produce them competitively. With approximately 6,400 employees serving more than 50 countries around the world, Domtar is driven by a commitment to turn sustainable wood fiber into useful products that people rely on every day.