AbitibiBowater Inc. has announced that the company would take advantage of its strong liquidity position to redeem an additional $85 million of its debt.

The redemption will reduce AbitibiBowater’s total debt to a face amount of approximately $586 million. This step is in addition to the approximately $270 million of debt the company redeemed in June 2011.

“Today’s announcement underscores our commitment to reduce debt and the associated interest burden at every opportunity,” stated Richard Garneau, President and Chief Executive Officer. “Debt reduction remains a key part of our strategy to decrease fixed costs and improve the Company’s financial position and competitiveness.”

The company will use available cash to carry out the redemption of $85 million in principal amount of its 10.25% senior secured notes due 2018, plus accrued and unpaid interest. The redemption is scheduled to occur on November 4, 2011, at a redemption price of 103%.

Source: AbitibiBowater