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Domtar Corp. 'BBB-' Ratings Placed On CreditWatch Negative On Planned Acquisition By Paper Excellence

Published May 11, 2021

3 pages (1489 words) — Published May 11, 2021

Price US$ 150.00 | Buy this Report Now

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Abstract:

Paper Excellence (not rated) has announced an all-cash deal to acquire Domtar Corp. for US$55.50 per share, valuing the company at an enterprise value of about US$3 billion. Details regarding the status of Domtar's debt at close of the transaction, prospective capital structure, and influence of Paper Excellence on the company's financial policies are unknown. However, if Domtar's debt remains outstanding upon closing, we believe the combined entity could have a weaker credit profile than stand-alone Domtar. As a result, S&P Global Ratings placed its 'BBB-' issuer credit and issue-level ratings on Domtar on CreditWatch with negative implications. TORONTO (S&P Global Ratings) May 11, 2021--S&P Global Ratings today took the rating actions listed above. The CreditWatch placement follows the announcement

Brief Excerpt:

...May 11, 2021 - Paper Excellence (not rated) has announced an all-cash deal to acquire Domtar Corp. for US$55.50 per share, valuing the company at an enterprise value of about US$3 billion. - Details regarding the status of Domtar's debt at close of the transaction, prospective capital structure, and influence of Paper Excellence on the company's financial policies are unknown. - However, if Domtar's debt remains outstanding upon closing, we believe the combined entity could have a weaker credit profile than stand-alone Domtar. - As a result, S&P Global Ratings placed its '###-' issuer credit and issue-level ratings on Domtar on CreditWatch with negative implications. TORONTO (S&P Global Ratings) May 11, 2021--S&P Global Ratings today took the rating actions listed above. The CreditWatch placement follows the announcement by Paper Excellence that it has signed a deal to buy Domtar for approximately US$3 billion (enterprise value). Paper Excellence is privately held, with pulp and paper assets...

Report Type:

Ratings Action

Ticker

UFS

Issuer

Domtar Corp.

GICS

Paper Products (15105020)

Sector

Global Issuers , Structured Finance

Country

United States

Region

United States

Format:

PDF

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Cite this Report


MLA:	S&P Global Ratings’ Credit Research. "Domtar Corp. 'BBB-' Ratings Placed On CreditWatch Negative On Planned Acquisition By Paper Excellence" May 11, 2021. Alacra Store. May 15, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Domtar-Corp-BBB-Ratings-Placed-On-CreditWatch-Negative-On-Planned-Acquisition-By-Paper-Excellence-2645441>

APA:	S&P Global Ratings’ Credit Research. (). Domtar Corp. 'BBB-' Ratings Placed On CreditWatch Negative On Planned Acquisition By Paper Excellence May 11, 2021. New York, NY: Alacra Store. Retrieved May 15, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Domtar-Corp-BBB-Ratings-Placed-On-CreditWatch-Negative-On-Planned-Acquisition-By-Paper-Excellence-2645441>

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