DBRS Assigns Rating of BB (high) to Domtar Corporation’s New Debt Issuance, Stable Trend

DBRS has today assigned a rating of BB (high) and a recovery rating of RR1, with a Stable trend, to Domtar Corporation’s (Domtar or the Company) new debt issuance of $300 million 4.4% senior notes due April 1, 2022. The transaction is expected to close on or about March 16, 2012.

The Notes will be unsecured obligations ranking equally with Domtar’s other senior unsecured indebtedness. Proceeds are expected to be used to fund the purchase price of the 10.750% notes due in 2017, 9.500% notes due in 2016, 7.125% notes due in 2015 and 5.375% notes due in 2013, tendered and accepted by the Company for purchase pursuant to its previously announced tender offer with maximum aggregate consideration not exceeding $250 million. The remaining proceeds are expected to be used for general corporate purposes.

Notes:
All figures are in U.S. dollars unless otherwise noted.

The applicable methodology is Rating Companies in the Forest Products Industry, which can be found on our website under Methodologies.

This is an unsolicited credit rating. This credit rating was not initiated at the request of the issuer and did not include participation by the issuer or any related third party.

For more information on this credit or on this industry, visit www.dbrs.com or contact us at info@dbrs.com.