Norske Skog's said it was seeking to raise €300 million ($426 million) via a senior unsecured five-year bond that will be callable after three years and will replace debt due next year.

Citi, DnB NOR Markets, Nordea Markets and SEB have been mandated to manage the bond.

The company's five-year credit default swaps tightened about 50 basis points to 710 basis points on the back of the announcement, according to Markit data.

Norske Skog's CDS has widened steadily from about 560 basis points in mid-February as the bond maturities edged closer.

Norske Skog is producer of newsprint and magazine paper. The group has 14 fully or partly owned mills in 11 countries with 44 sales offices and agents. Its newsprint and magazine paper is sold to over 80 countries. The company is rated 'B2' and 'B-' by Moody's Investors Service and Standard & Poor's, respectively.

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