AbitibiBowater (ABH), a provider of forest products, has completed the sale of its 75% indirect interest in ACH Limited Partnership, to a consortium of Canadian institutional investor and a private Canadian renewable energy company.
ABH will receive C$300m ($307.2m) of cash proceeds from the sale, out of which $185m ($189.4m) will be used to use to redeem a portion of outstanding 10.25% senior secured notes due 2018.
The balance of proceeds will be used for general corporate purposes.
ABH president and chief executive officer Richard Garneau said the completion of the sale will allow the company to reduce its debt and help improve its finances.
"We will continue to focus on reducing AbitibiBowater’s debt, and this represents an important step forward in line with our commitment," stated Garneau.
ACH LP will maintain its outstanding debt with the Caisse de depot et placement du Quebec of C$250m ($256m), as per the transaction.
ACH Limited Partnership is the owner and operator of hydroelectric generating stations located in Canada and the US.