Domtar Announces Redemption of 2022 Notes

(All financial information is in U.S. dollars, unless otherwise noted).

FORT MILL, S.C.--(BUSINESS WIRE)--Domtar Corporation (the “Company” or “Domtar”) (NYSE: UFS), today announced that it has elected to redeem $300 million in aggregate principal amount of its 4.40% Notes due 2022, representing all of the notes outstanding. The notes will be redeemed at a redemption price of 100 percent of the principal amount, plus accrued and unpaid interest, as well as a make-whole premium. The accrued interest will be paid for the period from April 1, 2021 up to, but excluding, the redemption date of April 8, 2021. The make-whole premiums will be calculated three days prior to redemption in accordance with the terms of the indenture governing the notes.

The terms of the redemption are described in the notice of redemption to be sent to registered holders on or about March 8, 2021. Notes to be redeemed are to be surrendered to The Bank of New York Mellon, as trustee and paying agent, in exchange for the payment of the redemption price. Holders who hold their notes through The Depository Trust Company, or DTC, will receive payment through DTC.

About Domtar

Domtar is a leading provider of a wide variety of fiber-based products including communication, specialty and packaging papers, market pulp and airlaid nonwovens. With approximately 6,600 employees serving more than 50 countries around the world, Domtar is driven by a commitment to turn sustainable wood fiber into useful products that people rely on every day. Domtar’s annual sales are approximately $3.7 billion, and its common stock is traded on the New York and Toronto Stock Exchanges. Domtar’s principal executive office is in Fort Mill, South Carolina. To learn more, visit www.domtar.com.

Forward-Looking Statements

Certain statements contained in this press release, the information incorporated herein by reference, and other written and oral statements made from time to time by us or on our behalf are based on current projections about operations, industry conditions, financial condition, and liquidity, may not relate strictly to historical or current facts and may contain forward-looking statements that reflect our current views with respect to future events and financial performance. As such, they are considered “forward-looking statements” which provide current expectations or forecasts of future events. Such statements can be identified by the use of terminology such as “anticipate”, “believe”, “expect”, “intend”, “aim”, “target”, “plan”, “continue”, “estimate”, “project”, “may”, “will”, “should” and similar expressions. These forward-looking statements should be considered with the understanding that such statements involve a variety of risks and uncertainties, known and unknown, and may be affected by inaccurate assumptions. Consequently, no forward-looking statement can be guaranteed and actual results may vary materially. Many risks, contingencies and uncertainties could cause actual results to differ materially from our forward-looking statements.