June 3, 2009 (FinancialWire) — Domtar Corp. (NYSE: UFS) said it plans to offer $250 million of senior notes due 2017. J.P. Morgan Securities (NYSE: JPM) and Morgan Stanley & Co. (NYSE: MS) are acting as the joint book-running managers.

The company intends to use the net proceeds from the offering to fund any portion of the purchase price of the 7.875% Notes due 2011 tendered and accepted by Domtar for purchase under a recent tender offer not funded with cash on hand. Any remaining proceeds would be used for general corporate purposes.

Montreal-based Domtar is a manufacturer and marketer of uncoated freesheet paper in North America and is also a manufacturer of papergrade, fluff and specialty pulp.

The company designs, manufactures, markets and distributes a range of business, commercial printing and publication as well as converting and specialty. Domtar also owns and operates a network of paper distribution facilities. Domtar also produces lumber and other specialty and industrial wood products.

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