Videotron Ltd. Announces Closing of $300 Million Senior Notes Offering
January 13 2010 - 9:59AM
Marketwired
Videotron Ltd. today announced the closing of its offering and sale
of $300 million aggregate principal amount of its 7 1/8 % Senior
Notes due 2020. This transaction marks Videotron's inaugural C$
high yield offering adding to an established presence in the US$
high yield market.
Based on significant oversubscription of the offering and the
large number of investors participating, Videotron's Senior Notes
offering was the most broadly distributed C$ high yield issue to
date. Videotron's offering also demonstrates investors' confidence
in the strength of its credit and the significant depth of the
Canadian high yield market.
Although orders received from Canadian investors exceeded the
amount of Senior Notes offered, a portion of the offering was sold
to qualified institutional buyers under rule 144A under the United
States Securities Act of 1933. Videotron intends to use the
proceeds of this offering to repay the drawings under its senior
secured credit facility and the remainder for general corporate
purposes.
This press release is not an offer to sell or the solicitation
of an offer to buy securities in any jurisdiction. The senior notes
have not been and will not be qualified for sale to the public
under applicable Canadian securities laws and, accordingly, any
offer and sale of the notes in Canada will be made on a basis which
is exempt from the prospectus and dealer registration requirements
of such securities laws. The senior notes have not been registered
under the United States Securities Act of 1933 or applicable state
securities laws, and the senior notes may not be offered or sold in
the United States absent registration or an applicable exemption
from registration.
Videotron Ltd. (www.videotron.com), a wholly owned subsidiary of
Quebecor Media Inc., is an integrated communications company
engaged in cable television, interactive multimedia development,
Internet access services, cable telephony and wireless telephone
service. Videotron is a leader in new technologies with its illico
interactive television system and its broadband network, which
supports high-speed cable Internet access, analog and digital cable
television, and other services. As of December 31, 2009, Videotron
was serving 1,777,000 cable television customers, including
1,084,100 subscribers to illico Digital TV. Videotron is also the
Quebec leader in high-speed Internet access, with 1,170,600
subscribers to its cable modem service as of December 31, 2009. As
of the same date, Videotron had activated 82,800 handsets on its
wireless telephone service and was providing cable telephone
service to 1,014,000 Quebec households and organizations. For the
fourth consecutive year, Videotron was been named Quebec's most
respected telecommunications company by Commerce magazine, based on
a Leger Marketing survey.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the United States Securities Act of
1933, as amended, and Section 21E of the United States Securities
Exchange Act of 1934, as amended, and forward-looking information
within the meaning of National Instrument 51-102 Continuous
Disclosure Obligations in Canada (collectively, "forward-looking
statements"). All statements other than statements of historical
facts included in this press release, including statements
regarding our prospects, plans, financial position and business
strategy may constitute forward-looking statements. These
forward-looking statements are based on current expectations,
estimates, forecasts and projections about the industries in which
we operate as well as beliefs and assumptions made by our
management. Such statements include, in particular, statements
about our plans, prospects, financial position and business
strategies. Words such as "may," "will," "expect," "continue,"
"intend," "estimate," "anticipate," "plan," "foresee," "believe" or
"seek" or the negatives of these terms or variations of them or
similar terminology are intended to identify such forward-looking
statements. Although we believe that the expectations reflected in
these forward-looking statements are reasonable, these statements,
by their nature, involve risks and uncertainties and are not
guarantees of future performance. Such statements are also subject
to assumptions concerning, among other things: our anticipated
business strategies; anticipated trends in our business; and our
ability to continue to control costs.
We can give no assurance that these estimates and expectations
will prove to have been correct. Actual outcomes and results may,
and often do, differ from what is expressed, implied or projected
in such forward-looking statements, and such differences may be
material. Some important factors that could cause actual results to
differ materially from those expressed in these forward-looking
statements include, but are not limited to: our ability to
successfully build and deploy our new wireless services network on
the timeline we are targeting and to implement successfully our
strategy of becoming a facilities-based wireless provider; general
economic, financial or market conditions; the intensity of
competitive activity in the industries in which we operate,
including competition from alternative means of programs and
content transmission; unanticipated higher capital spending
required to address continued development of competitive
alternative technologies or the inability to obtain additional
capital to continue the development of our business; our ability to
implement successfully our business and operating strategies and
manage our growth and expansion; disruptions to the network through
which we provide our digital television, Internet access and
telephony services, and our ability to protect such services from
piracy; labour disputes or strikes; changes in our ability to
obtain services and equipment critical to our operations; changes
in laws and regulations, or in their interpretations, which could
result, among other things, in the loss (or reduction in value) of
our licenses or markets or in an increase in competition,
compliance costs or capital expenditures; our substantial
indebtedness, the tightening of credit markets, and the
restrictions on our business imposed by the terms of our debt; and
interest rate fluctuations that affect a portion of our interest
payment requirements on long-term debt. We caution you that the
above list of cautionary statements is not exhaustive. These and
other factors could cause actual results to differ materially from
our expectations expressed in the forward-looking statements
included in this press release, and you are encouraged to read the
section entitled "Risk Factors" of Videotron's annual report on
Form 20-F for the year ended December 31, 2008 as well as the
section entitled "Risks and Uncertainties" in the Management
Discussion and Analysis report for the year ended December 31, 2008
prepared by Quebecor Inc. for further details and descriptions of
these and other factors. Each of these forward-looking statements
speaks only as of the date of this offering memorandum. We will not
update these statements unless applicable securities laws require
us to do so.
Contacts: Jean François Pruneau Vice President, Finance
514-380-4144 Isabelle Dessureault Vice President, Public Affairs
514-380-7501
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