/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE
SERVICES OR DISSEMINATION IN THE U.S./
MONTRÉAL, Feb. 4, 2025
/CNW/ - Cogeco Communications Inc. (TSX: CCA) ("Cogeco
Communications" or the "Corporation") announced today that it has
priced an offering of $325 million aggregate principal amount
of 4.743% senior secured notes due February
6, 2035 (the "Notes").
The Notes are being offered through an agency syndicate
consisting of BMO Nesbitt Burns Inc. and CIBC World Markets Inc.,
as joint bookrunners and co-lead managers, and including National
Bank Financial Inc., as co-lead manager, and Desjardins Securities
Inc., Merrill Lynch Canada Inc., RBC Dominion Securities Inc., MUFG
Securities (Canada), Ltd., TD
Securities Inc. and Casgrain & Company Limited, as
co-managers.
The offering is expected to close on or about February 6, 2025, subject to customary closing
conditions. Cogeco Communications intends to use the net proceeds
of the offering to repay existing indebtedness and for other
general corporate purposes.
The Notes will be direct and unsubordinated secured debt
obligations of Cogeco Communications and will rank equally and
pari passu, with all other secured senior indebtedness of
Cogeco Communications.
The Notes have been assigned a provisional rating of "BBB
(low)" from DBRS Limited (DBRS Morningstar) with a "Stable"
trend and Cogeco Communications expects that the Notes will receive
a rating of "BBB-" from Standard & Poor's Ratings
Services. The Notes are being offered in Canada on a private placement basis in
reliance upon exemptions from the prospectus requirements under
applicable securities legislation.
The Notes have not been and will not be qualified for sale to
the public under applicable securities laws in Canada and, accordingly, any offer and sale of
the Notes in Canada will be made
on a basis which is exempt from the prospectus requirements of such
securities laws. The Notes have not been and will not be registered
under the United States Securities Act of 1933, as amended (the
"U.S. Securities Act"), or the securities laws of any other
jurisdiction, and may not be offered or sold in the United States absent registration under,
or an applicable exemption from the registration requirements of,
the U.S. Securities Act. This press release shall not constitute an
offer to sell or the solicitation of an offer to buy, nor shall
there be any offer to sell or a solicitation of an offer to buy any
securities in any jurisdiction where it is unlawful to do so.
ABOUT COGECO COMMUNICATIONS INC.
Cogeco Communications Inc. is a leading telecommunications
provider committed to bringing people together through powerful
communications and entertainment experiences. We provide
world-class Internet, video and wireline phone services to 1.6
million residential and business subscribers in Canada and thirteen states in the United States. We also offer wireless
services in most of our U.S. operating territory. Our services are
marketed under the Cogeco and oxio brands in Canada, and under the Breezeline brand in the
U.S. We take pride in our strong presence in the communities we
serve and in our commitment to a sustainable future. Cogeco
Communications Inc.'s subordinate voting shares are listed on the
Toronto Stock Exchange (TSX: CCA).
FORWARD-LOOKING STATEMENTS
Certain statements contained in this press release may
constitute forward-looking information within the meaning of
securities laws. Forward-looking information may relate to Cogeco
Communications, future outlook and anticipated events, business,
operations, financial performance, financial condition or results
and, in some cases, can be identified by terminology such as "may";
"will"; "should"; "expect"; "plan"; "anticipate"; "believe";
"intend"; "estimate"; "predict"; "potential"; "continue";
"foresee", "ensure" or other similar expressions concerning matters
that are not historical facts. Particularly,
statements with respect to the offering of Notes and
the intended timing and completion thereof, and the expected use of
the net proceeds of the offering of Notes are forward-looking
statements. These statements are based on certain factors and
assumptions including expected satisfaction or waiver of the
conditions to closing the offering of Notes on the expected
timeline, which Cogeco Communications believes are reasonable as of
the current date. While management considers these assumptions to
be reasonable based on information currently available to the
Corporation, they may prove to be incorrect. Forward-looking
information is also subject to certain factors, including risks and
uncertainties that could cause actual results to differ materially
from what Cogeco Communications currently expects. These factors
include risks such as the failure to satisfy the conditions to the
completion of the offering of Notes, as well as general market
conditions, competitive risks (including changing competitive and
technology ecosystems and disruptive competitive strategies adopted
by our competitors), business risks, regulatory risks, tax risks,
technology risks (including cybersecurity), financial risks
(including variations in currency and interest rates), economic
conditions (including inflation pressuring revenue, reduced
consumer spending and increasing costs), talent management risks
(including the highly competitive market for a limited pool of
digitally skilled employees), human-caused and natural threats to
the Corporation's network (including increased frequency of extreme
weather events with the potential to disrupt operations),
infrastructure and systems, sustainability and sustainability
reporting risks, ethical behavior risks, ownership risks,
litigation risks and public health and safety, many of which are
beyond the Corporation's control. For more exhaustive information
on these risks and uncertainties, the reader should refer to the
"Uncertainties and main risk factors" section of the Corporation's
fiscal 2024 annual Management's Discussion and Analysis
("MD&A") and first quarter of fiscal 2025 MD&A. The closing
of the offering is subject to general market and other conditions
and there can be no assurance that the offering will be completed
or that the terms of the offering will not be modified. These
factors are not intended to represent a complete list of the
factors that could affect Cogeco Communications and future events
and results may vary significantly from what management currently
foresees. The reader should not place undue importance on
forward-looking information contained in this press release and the
forward-looking statements contained in this press release
represent Cogeco Communications' expectations as of the date of
this press release (or as of the date they are otherwise stated to
be made) and are subject to change after such date. While
management may elect to do so, the Corporation is under no
obligation (and expressly disclaims any such obligation) and does
not undertake to update or alter this information at any particular
time, whether as a result of new information, future events or
otherwise, except as required by law.
INFORMATION:
Patrice
Ouimet
Chief Financial Officer
Cogeco Communications Inc.
(514) 764-4700
patrice.ouimet@cogeco.com
Troy
Crandall
Head, Investor
Relations
Cogeco Communications
Inc.
(514)
764-4600
troy.crandall@cogeco.com
SOURCE Cogeco Communications Inc.