Aug 03, 2005. /Lesprom Network/. Domtar announced on Wednasday that it has entered into a definitive agreement with a group of underwriters for the sale of an aggregate principal amount of $400 million of its 7.125 % notes due 2015 pursuant to a public offering in the United States. The group of underwriters is led by J.P. Morgan Securities Inc. and Citigroup Global Markets Inc. as joint book-running managers. Domtar intends to use the gross proceeds from the sale of the notes to redeem its 8.75% notes due in August 2006 in an aggregate principal amount of $150 million and the balance to repay a substantial portion of its unsecured revolving credit facility. Domtar is the third largest producer of uncoated freesheet paper in North America. It is also a leading manufacturer of business papers, commercial printing and publication papers, and technical and specialty papers. Domtar manages according to internationally recognized standards 18 million acres of forestland in Canada and the United States, and produces lumber and other wood products. Domtar has 10,000 employees across North America. The company also has a 50% investment interest in Norampac Inc., the largest Canadian producer of containerboard.