BOSTON (Thomson Financial) - AbitibiBowater Inc. Monday said Fairfax
Financial Holdings Ltd. will invest $350 million in AbitibiBowater in the form
of unregistered convertible debentures.
The transaction, which is part of the AbitibiBowater's $1.4 billion
refinancing plan, is expected to address upcoming debt maturities and general
liquidity needs of its Abitibi-Consolidated Inc. subsidiary, the company said.
The $350 million of convertible debentures is convertible into
AbitibiBowater common shares at $10 per share and carries an 8% cash coupon. The
debentures have a maturity of five years and are non-callable.
The deal is expected to close on March 31.
Shares of Montreal-based AbitibiBowater rose 4.3% to $10.19, whiles shares
of Toronto-based Fairfax Financial gained 1.6% to $273.34.
Casey Logan
cl/pc
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