MIRA
INFORM REPORT
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Report Date : |
09.08.2007 |
IDENTIFICATION DETAILS
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Name : |
DOMTAR PULP AND
PAPER PRODUCTS INC. |
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Registered Office : |
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Country : |
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Date of Incorporation : |
30/11/2006 |
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Legal Form : |
Federally
Chartered Corp. - Private |
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Line of Business : |
Operator of
several pulp and paper mills. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
IDENTIFICATION &
EXECUTIVE SUMMARY
Company Name: DOMTAR
PULP AND PAPER PRODUCTS INC.
Address: 395
DE MAISONNEUVE BOULEVARD WEST
City:
State/Province:
Zip Code: H3A
ILG
Country:
Telephone: 514-848-5555
Facsimile: 514-848-6850
As of:
Sales / Revenue:
Net Income:
Total Equity:
Legal Form: Federally
Chartered Corp. - Private
Website: www.domtar.com
Business Activity: The Subject is an operator of several
pulp and paper mills located throughout the United
States and
NOTE TO CLIENT
Person
Contacted: Ms. Sylvie Humair, Treasury
Manager. She verified and updated the
information presented to her.
Please see "
Imperatives" regarding recent
developments regarding the Subject and its parent companies.
IMPERATIVES
According to Ms.
Humair, on May 7, 2007, DOMTAR INC. acquired Weyerhaeuser Company. Due to this acquisition, a new holding
company was formed under the name, DOMTAR CORPORATION, a
DOMTAR PAPER COMPANY
LLC is a holding company and immediate parent of DOMTAR PULP AND PAPER PRODUCTS
INC., which was created when several of the paper and pulp mill assets of
Weyerhaeuser Company were acquired by DOMTAR INC. prior to the formation of
DOMTAR CORPORATION.
Ms. Humair also
stated that before the end of 2007, the Subject Company will become a
wholly-owned subsidiary of DOMTAR INC., which is currently an affiliate
company.
LEGAL
Legal Form: Federally
Chartered Corp. - Private
Since (D/M/Y): 30/11/2006
State/Province of
Incorporation:
Status: ACTIVE
Previous Legal Form:
Company is NOT required
to publish an annual financial report.
The Company
federally chartered in
Corporation #6666302
BN #834476160RC0001
Corporation Name(s):
DOMTAR PULP AND PAPER PRODUCTS INC./
PRODUITS DE PÂTES ET
PAPIERS DOMTAR INC.
Mailing Address:
[Latest address on file]
Care of:
Street: 395 BOUL. DE
MAISONNEUVE OUEST
City: MONTRÉAL
Province:
Postal Code: H3A1L6
Country:
Registered Office
Address: [Latest address on file]
Care of:
Street: 395 BOUL. DE
MAISONNEUVE OUEST
City: MONTRÉAL
Province:
Postal Code: H3A1L6
Country:
Reg. Off. Eff:
2007/08/06
Status: Active
Incorporation Date:
2006/11/30
Managers/Key
Personnel
Mr. Raymond
Royer President
AFFILIATED ENTITIES
The following are a
sample of affiliates of the Subject:
Domtar Inc.
Domtar Industries
Inc.
Domtar Delaware
Holdings Inc.
Domtar Pacific
Papers Inc.
Domtar Pacific
Papers ULC
Domtar (
Domtar Delaware
Investments, Inc.
Parent Companies
Parent Company: DOMTAR PAPER COMPANY LLC
Ultimate
Parent: DOMTAR CORPORATION
395 DE MAISONNEUVE
BOULEVARD WEST
The following are
selected stock price and financial statement information for the ultimate
parent company, DOMTAR CORPORATION, which trades on the
As of 8/8/2007 in US
Dollars
Stock Price: 8.74
52 Week High: 11.54
52 Week Low: 5.67
Shares
Outstanding: 440,200,000
Please note that the
following figures are for DOMTAR INC. prior to the acquisition that formed
DOMTAR CORPORATION:
Fiscal Year End:
12/31/2006 in Canadian Dollars:
Total Assets: 4,955,000
Total
Liabilities: 3,014,000
Total Equity: 1,941,000
Net Sales: 3,989,000
Net Income: 256,000
For legal purposes,
the Company has several paper companies as subsidiaries, however, it has no
operating subsidiaries at this time.
BANKS
Royal Bank of
Telephone: 780
448-6980
Facsimile:
Account Number:
Account Manager:
This bank only
provides credit information to other banks.
PAYMENT HISTORY
------------------------------------------------------------------------------
Supplier's Name/Industry Terms Amount/Pay Habits/Comments
Rptd
Open Credit Credit
High Total Current
Past Due/Pay Period
Date
Date Limit Limit Dt. Credit Owing
$ 1st 2nd
3rd
------------------------------------------------------------------------------
Wholesale-Elec Appls:
*Aug 0 25,000 291
291 0 0
0
E.B. HORSMAN & SONS:
604-576-9916
*Aug 0 1,169 1,169
0 1,169 0
0
Trucking:
*Aug 0 116 116
116 0 0
0
WESTBURNE ELECTRIC B: 604-205-2700 Merged accts
*Aug 0 1,274K 23,098
9,604 2,826 9,311
1,357
RONA REVY INC.: 604-585-4264
*Jul 0 42 42
0 42 0
0
Whlsl-Ind Mach Sppls:
*Jul 0 895 894
894 0 0
0
Transportation Serv: Merged accts
*Jul 0 178 178
129 0 0
49
PETRO CANADA INC: 905-469-3771
*Jul 0 51,000 51,000
51,000 0 0
0
KAL TIRE H O: 250-558-3200
*Jul 0 45,668 45,668
7,390 37,575 0
703
Whlsl-Paper & Paper:
*Jul 0 211 211
211 0 0
0
Whlsl Ferrs Nonferrs: DLA-2007/05/25
*Jun May/1993
75,000 Apr/2007 39,486 7,619
7,375 244 0
0
Mfr-Bolt,Screw,Rivet:
*Jun 0 15,377 15,377
15,377 0 0
0
Whlsl Ferrs Nonferrs:
*Jun 0 200K
230 230 0
0 0
PEERLESS ENGINEERING: 604-659-4100
*May 0 7,655 7,655
7,655 0 0
0
Whlsl-Durable Goods:
*May 0 492 81
81 0 0
0
FINNING LTD: 780-483-3636
*May 0 8,489 8,489
0 0 0
8,489
Mfr-Sheet Metal:
*May 0 168 168
168 0 0
0
Wholesale-Lumber:
*May
0 7,797 7,797
7,797 0 0
0
------- -------
------- ------- ------- -------
P.I. =
18 90 Days 1,678K
170K 108K 41,856
9,311 10,598
Reported ------- ------- ------- ------- -------
-------
CORIX WATER PRODUCTS: 604-575-3341
*May 0 50,000 307
307 0 0
0
Mfr-Hand and Edge To:
*Apr 0 5,000 2,703
2,703 0 0
0
Mfr-Machine Tool:
*Apr 0 7,000K 21,404
13,349 8,055 0
0
Mfr-Valve & Pipe Fit:
*Apr 0 1,197 148
148 0 0
0
Transportation Serv:
*Feb
0 190 190
190 0 0
0
BULLDOG BAG LTD: 604-273-8021
*Feb 0 50,000 18,262
18,262 0 0
0
Mfr-Pump &
Pumping E:
*Feb 0 1,511 1,511
1,511 0
0 0
Mfr-Petroleum Prdts:
*Jan 0 1,345 1,345
1,345 0 0
0
Whlsl-Ind Mach Sppls:
*Jan 0 11,017 11,017
11,017 0 0
0
Air Transport:
*Jan 0 186 186
186 0 0
0
Wholesale-Elec Equip:
*Jan 0 166K 331
0 331 0
0
Whlsl-Ind Mach Sppls: Merged accts
*Jan 0 19,606 19,606
19,605 0 0
1
Whlsl-Professnl Equp:
*Jan 0 320 320
0 320 0
0
Mfr Fabricated Metal:
*Jan 0 1,912 1,912
1,912 0 0
0
CHEVRON
*Jan 0 25,000 8,304
0 0 0
8,304
SURFWOOD SUPP 1964: 604-540-1232
*Dec 0 54 54
54 0 0
0
Wholesale-Lumber:
*Dec
0 1,269 1,269
1,269 0 0
0
Whlsl-Plumbing/Heatg:
*Oct 0 195 195
195 0 0
0
BRANDT TRACTOR LTD: 306-791-7777
*Sep 0 2,825 2,825
2,825 0
0 0
Mfr-Fabricated Struc:
*Sep 0 10,367 10,367
0 10,367 0
0
Whlsl-Commercial Mch:
*Sep 0 313 313
313 0 0
0
Mfr Elevators& Moving:
*Sep 0 3,284 3,284
0 3,284 0
0
CONECO DIV OF KCL: 604-888-9700
*Aug 0 16,264 16,264
8,283 7,981 0
0
Whlsl-Ind Mach Sppls:
*Jul 0 12,944
7,800 7,800 0
0 0
Mfr-Paint, Varnishes:
*Jul 0 100K 96
96 0 0
0
Trucking:
*Jul 0 386 386
0 385 1
0
------- ------- -------
------- ------- -------
P.I. =
16 Total 9,159K
300K 199K 72,579
9,312 18,903
Reported ------- ------- ------- ------- -------
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PAYMENT TRENDS
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Payment C.I.
Number of Total Current Overdue
Quarters
Index Score Suppliers
Owing $ 1st 2nd
3rd
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2 Qtr/2007
9 23 21
163,556 142,763 9,620
212 10,961
1 Qtr/2007
16 31 27
198,202 154,870 15,947
5,147 22,238
4 Qtr/2006
25 34 21
137,928 75,496 40,796
1,406 20,230
3 Qtr/2006
13 30 27
177,994 128,515 32,587
16,746 146
2 Qtr/2006
13 20 29
1,127K 703,816 407,811
1,170 14,518
1 Qtr/2006
18 25 26
606,999 349,588 204,049 31,991
21,371
4 Qtr/2005
15 23 32
842,953 578,434 193,077
28,139 43,303
3 Qtr/2005
12 24 27
272,356 209,826 41,187
17,266 4,077
2 Qtr/2005
21 31 24
163,324 92,692 50,303
17,648 2,681
FINANCIAL INFORMATION
Due to the newness
of the Company, no financial statement information is available at this time.
CURRENT OPERATIONS
NAICS Code: 3221
Pulp, Paper, and Paperboard Mills
Business Activity:
The Subject is an
operator of several pulp and paper mills located throughout the
The heading address
is the headquarters for the Subject. The
facility consists of office space.
The Company operates
several mills throughout
PUBLIC RECORD
A search of public
revealed no derogatory information, bankruptcy petitions or Uniform Commercial
Codes.
GENERAL COMMENTS
The Subject,
federally registered in
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)