Videotron Ltd. Announces Closing of C$300 Million Senior Notes Offering
July 05 2011 - 9:35AM
Marketwired
Videotron Ltd. today announced the closing of its offering and sale
of C$300 million aggregate principal amount of 6 7/8 % Senior Notes
due 2021. 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
finance the redemption and retirement of US$255 million aggregate
principal amount of its issued and outstanding 6 7/8 % Senior Notes
due 2014 on July 18, 2011, to finance the settlement and
termination of related hedging contracts and for the payment of
related transaction fees and expenses.
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. On June 17, 2011, Videotron Ltd. announced the
distribution of a notice of redemption under the indenture
governing its issued and outstanding 6 7/8 % Senior Notes due 2014
for the redemption of US$255 million aggregate principal amount of
such notes on July 18, 2011.
Videotron (www.videotron.com), a wholly owned subsidiary of
Quebecor Media Inc., is an integrated communications company
engaged in cable television, interactive multimedia development,
and Internet access, cable telephone and mobile telephone services.
Videotron is a leader in new technologies with its interactive
Digital TV service and its broadband network, which supports
high-speed cable Internet access, analog and digital cable
television, and other services. As of March 31, 2011, Videotron was
serving 1,808,600 cable television customers, including 1,243,700
subscribers to its digital service. Videotron is also the Quebec
leader in high-speed Internet access, with 1,263,600 subscribers to
its cable service as of March 31, 2011. As of the same date,
Videotron had 164,700 subscriber connections to its mobile
telephone service and was providing cable telephone service to
1,129,800 Quebec households and organizations. For the sixth
consecutive year, Videotron was named Quebec's most respected
telecommunications company by Les Affaires 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 industry and 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
continue rolling-out and developing our new 4G network and
facilities-based mobile offering; 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 deploy our 4G
network or 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 "Item 3. Key Information - Risk Factors" of Videotron's
annual report on Form 20-F for the year ended December 31, 2010 for
further details and descriptions of these and other factors. Each
of these forward-looking statements speaks only as of the date of
this press release. We will not update these statements unless
applicable securities laws require us to do so.
Contacts: Videotron Jean-Francois Pruneau Vice President
514-380-4144 For media only Elodie Girardin-Lajoie Specialist,
Media and Analysts Corporate Communications 514-380-7772 Mobile:
514-516-7772
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