Videotron Ltd. Prices US$800,000,000 Senior Notes Offering
February 29 2012 - 6:30PM
Marketwired
Videotron Ltd. today announced the pricing of its new issuance of
US$800.0 million aggregate principal amount of 5% Senior Notes due
2022. The new senior notes will be sold at par, will carry a coupon
of 5% and will mature on July 15, 2022. Videotron intends to use
the proceeds of this offering to repurchase or redeem by March 30,
2012 all US$395 million principal amount of its outstanding 6 7/8%
Senior Notes due 2014, to fully-repay borrowings under Videotron's
revolving credit facility, to pay related transaction fees and
expenses and to use the remainder for general corporate
purposes.
The success of the offering clearly demonstrates the strength of
Videotron's business and credit profile as it was well
oversubscribed by investors. It translated into the company
obtaining its lowest coupon rate ever in the high-yield capital
market since being acquired by Quebecor Media Inc. in 2000.
This press release is not an offer to sell or the solicitation
of an offer to buy securities in any jurisdiction. The senior notes
due 2022 mentioned herein 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. 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.
Any purchase of Videotron's 6 7/8% Senior Notes due 2014 will be
made pursuant to Videotron's Offer to Purchase dated February 29,
2012 and the related letter of transmittal. Any redemption of the 6
7/8% Senior Notes due 2014 will be made pursuant to a notice of
redemption under the indenture governing such notes.
Videotron, 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
December 31, 2011, Videotron was serving 1,861,477 cable television
customers, including 1,400,814 subscribers to its digital service.
Videotron is also the Quebec leader in high-speed Internet access,
with 1,332,551 subscribers to its cable service as of December 31,
2011. As of the same date, Videotron had 290,578 subscriber
connections to its mobile telephone service and was providing cable
telephone service to 1,205,272 Quebec households and organizations.
For the seventh 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 news release contains "forward-looking information" within
the meaning of applicable Canadian securities legislation and
"forward-looking statements" within the meaning of United States
federal securities legislation (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: 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; new technologies that would
change consumer behaviour toward our product suite; unanticipated
higher capital spending required 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 "Item 3. Key Information - Risk Factors" as well as
statements located elsewhere in 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: Jean-Francois Pruneau Vice President Videotron 514
380-4144 For media only Elodie Girardin-Lajoie Specialist Corporate
Communications Videotron 514 380-7772
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