RLPC-UPDATE 1-AbitibiBowater prices $400 mln loan-source

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NEW YORK, March 26 (Reuters) - A $400 million term loan for AbitibiBowater (ABH.N: Quote, Profile, Research)(ABH.TO: Quote, Profile, Research) has been priced by Goldman Sachs, a source close to the deal told Reuters Loan Pricing Corp. on Wednesday.

The loan was priced at 800 basis points over the London interbank offered rate with a discount of 96 cents on the dollar. It also includes a 3.5 percent floor on the Libor rate. Pricing on the loan was increased from about 700 basis points over Libor.

The loan is part of a refinancing plan to address upcoming debt maturities and general liquidity needs of the company's Abitibi-Consolidated Inc. subsidiary.

Also as part of the refinancing, the company on Wednesday sold $413 million in senior secured notes due 2011.

Earlier, Abitibi announced amendments to its exchange offer for its shorter-dated notes. The company has reduced the consent condition for each note being tendered to 75 percent of holders from 90 percent.

The company has also increased the exchange payment and said that the indenture for the exchange notes will include covenants substantially similar to those of the new senior secured notes being offered in the exchange.

In addition to the expected sale of Abitibi's Snowflake, Ariz. mill for $161 million, the company confirmed it is actively exploring sales of other non-core assets to improve its liquidity and financial flexibility.

The eighth-largest publicly traded pulp and paper manufacturer in the world, AbitibiBowater produces newsprint, commercial printing papers, market pulp and wood products. (Reporting by Smita Madhur; editing by Dena Aubin)