Resolute Announces Further Debt Reduction and Share Repurchase Milestone
MONTREAL, Sept. 10, 2012 /PRNewswire/ - Resolute Forest Products Inc. (NYSE: RFP) (TSX: RFP) announced today that it would take advantage of its strong liquidity position to redeem an additional $85 million of its 10.25% senior secured notes due 2018. The Company also announced that it had now repurchased 3.7 million shares of its common stock under the existing $100 million share repurchase program.
"I'm pleased to say that we have now repurchased more shares than we issued to acquire Fibrek," stated Richard Garneau, president and chief executive officer. "Today's announcements demonstrate our commitment to disciplined capital management - we are using our strong financial position to reduce debt, while also returning cash to shareholders. We will continue to manage capital with the utmost discipline, carefully balancing initiatives to return cash to shareholders with other considerations, such as pursuing sound capital investments and opportunities to further increase Resolute's earnings power."
The Company will use available cash for the redemption of $85 million in principal amount of the notes, plus accrued and unpaid interest. The redemption is scheduled to occur on October 10, at a redemption price of 103%. Following the redemption, the aggregate face amount of the notes will be approximately $500 million.
About Resolute Forest Products
Resolute Forest Products is a global leader in the forest products industry with a diverse range of products, including newsprint, commercial printing papers, market pulp and wood products. The Company owns or operates 21 pulp and paper mills and 22 wood products facilities in the United States, Canada and South Korea. Marketing its products in more than 90 countries, Resolute has third-party certified 100% of its managed woodlands to sustainable forest management standards. The shares of Resolute Forest Products trade under the stock symbol RFP on both the New York Stock Exchange and the Toronto Stock Exchange.
Resolute and other member companies of the Forest Products Association
of Canada, as well as a number of environmental organizations, are
partners in the Canadian Boreal Forest Agreement. The group works to
identify solutions to conservation issues that meet the goal of
balancing equally the three pillars of sustainability linked to human
activities: environmental, social and economic. Resolute is also a
member of the World Wildlife Fund's Climate Savers program, in which
businesses establish ambitious targets to voluntarily reduce greenhouse
gas emissions and work aggressively toward achieving them.
Cautionary Statements Regarding Forward-looking Information
Statements in this press release that are not reported financial results or other historical information of Resolute Forest Products Inc. are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of forward-looking terminology such as the words "should," "would," "could," "will," "may," "expect," "believe," "anticipate," "attempt," "project" and other terms with similar meaning indicating possible future events or potential impact on our business or Resolute's shareholders.
The reader is cautioned not to place undue reliance on these forward-looking statements, which are not guarantees of future performance. These statements are based on management's current assumptions, beliefs and expectations, all of which involve a number of business risks and uncertainties that could cause actual results to differ materially. The potential risks and uncertainties that could cause Resolute's actual future financial condition, results of operations and performance to differ materially from those expressed or implied in the presentation referred to above include, but are not limited to, the potential risks and uncertainties set forth under the heading "Risk Factors" in Part I, Item 1A of Resolute's annual report on Form 10-K for the year ended December 31, 2011, filed with the United States Securities and Exchange Commission and the Canadian securities regulatory authorities.
All forward-looking statements in this press release are expressly qualified by the cautionary statements above and in Resolute's other filings with the SEC and the Canadian securities regulatory authorities. Resolute disclaims any obligation to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
SOURCE RESOLUTE FOREST PRODUCTS INC.