Resolute Forest Products Inc. completed the sale of the Catawba, South Carolina, paper and pulp mill to New-Indy Containerboard, LLC ("New-Indy"). The total purchase price of about$300 million consists of$260 million in cash, before customary closing adjustments, 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 theCatawbamill to New-Indy and wish the new team every success with its investment in the diversification of the mill's operations," stated YvesLaflamme, president and CEO of Resolute.
Resolute has agreed to use the majority of the proceeds from the asset sale to repurchase $225million of its 5.875% Senior Notes due in 2023, thereby improving financial flexibility.
TM Capital Corp. acted as Resolute's financial advisor on the transaction, while Akerman LLP and Troutman Sanders LLP acted as Resolute's legal counsels.
Resolute Forest Products is a global leader in the forest products industry with a diverse range of products, including market pulp, tissue, wood products, newsprint and specialty papers.
