Research Update: Domtar Corp. 'BBB-' Ratings Placed On CreditWatch Negative On Planned Acquisition By Paper Excellence - S&P Global Ratings’ Credit Research

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

Research Update: Domtar Corp. 'BBB-' Ratings Placed On CreditWatch Negative On Planned Acquisition By Paper Excellence - S&P Global Ratings’ Credit Research
Research Update: Domtar Corp. 'BBB-' Ratings Placed On CreditWatch Negative On Planned Acquisition By Paper Excellence
Published May 11, 2021
3 pages (1519 words) — Published May 11, 2021
Price US$ 225.00  |  Buy this Report Now

About This Report

  
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, on May 11, 2021, S&P Global Ratings placed its 'BBB-' issuer credit and issue-level ratings on Domtar on CreditWatch with negative implications. The CreditWatch placement follows the announcement by Paper Excellence that it has signed a deal to buy Domtar

  
Report Type:

Research Update

Ticker
UFS
Issuer
Domtar Corp.
GICS
Paper Products (15105020)
Sector
Global Issuers , Structured Finance
Country
United States
Region
United States
Format:
PDF Adobe Acrobat
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S&P Global Ratings’ Credit Research—S&P Global Ratings’ credit research provides analysis on issuers and debt obligations of corporations, states and municipalities, financial institutions, insurance companies and sovereign governments. S&P Global Ratings also offers insight into the credit risk of structured finance deals, providing an independent view of credit risk associated with a growing array of debt-securitized instruments.

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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Research Update: 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/Research-Update-Domtar-Corp-BBB-Ratings-Placed-On-CreditWatch-Negative-On-Planned-Acquisition-By-Paper-Excellence-2645442>
  
APA:
S&P Global Ratings’ Credit Research. (). Research Update: 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/Research-Update-Domtar-Corp-BBB-Ratings-Placed-On-CreditWatch-Negative-On-Planned-Acquisition-By-Paper-Excellence-2645442>
  
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