Catalyst Paper Corporation Completes US$318 Million Private Exchange Offer
|Areas||Banking and Finance Law, Commercial Real Estate, Corporate and Commercial, Corporate Finance and Securities, Corporate Restructuring, Tax|
Goodmans represented the Ad Hoc Committee of Noteholders of Catalyst Paper Corporation in Canada in connection with the completion of a private exchange offer and consent solicitation, the terms of which were originally negotiated by the Ad Hoc Committee of Noteholders of Catalyst Paper Corporation and detailed in a support agreement, to exchange Catalyst’s outstanding 8 5/8% Senior Unsecured Notes due June 15, 2011 (the "Old Notes") for new 11% Senior Secured Notes due December 15, 2016 (the "New Notes"). U.S.$318,676,000 in aggregate principal amount of Old Notes were accepted by Catalyst in exchange for U.S.$280,434,000 in aggregate principal amount of New Notes.
The primary first lien collateral for the new notes was all of Catalyst’s real property and equipment located in Canada. As part of the transaction, certain amendments were made to Catalyst’s existing senior credit facility with CIT Business Credit Canada Inc., as agent, whereby the lenders under such facility received a second lien on Catalyst’s real property and equipment located in Canada.