Videotron Ltd. Announces Closing of US$800,000,000 Senior Notes Offering
March 14 2012 - 9:22AM
Marketwired
Videotron Ltd. today announced the closing of its issuance and sale
of US$800 million aggregate principal amount of 5% Senior Notes due
2022 (the "2022 Notes"). Videotron intends to use the proceeds of
this issuance 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.
As a result of the oversubscription of the offering and
favourable financing terms, Videotron upsized its offering. It
translated into Videotron obtaining its lowest coupon rate ever in
the high-yield capital markets since being acquired by Quebecor
Media Inc. in 2000. This offering is in line with Videotron's
objective of extending the maturities of its credit instruments
through opportunistic access to debt capital markets.
This press release is not an offer to sell or buy, or the
solicitation of an offer to buy or sell, securities in any
jurisdiction. The 2022 Notes have not been registered under the
United States Securities Act of 1933 or applicable state securities
laws, and the 2022 Notes may not be offered or sold in the United
States absent registration or an applicable exemption from
registration. The 2022 Notes have not been and will not be
qualified for sale to the public under applicable Canadian
securities laws.
On February 29, 2012, Videotron 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$395 million aggregate principal amount of such notes on March
30, 2012. Also on February 29, 2012, Videotron announced a cash
tender offer for its issued and outstanding 6 7/8% Senior Notes due
2014 made pursuant to an offer to purchase (the "Offer to
Purchase") of the same date, such tender offer (the "Tender Offer")
to expire on March 28, 2012. In those jurisdictions where the
securities laws require the Tender Offer to be made by a licensed
broker or dealer, the Tender Offer will be deemed to be made by the
dealer manager mentioned in the Offer to Purchase or one or more
registered brokers or dealers licensed under the laws of such
jurisdiction. None of Videotron or its board of directors, the
dealer manager in respect of the Tender Offer, the tender and
information agent or the trustee for the 6 7/8% Senior Notes due
2014 makes any recommendation that holders tender or refrain from
tendering all or any portion of the principal amount of their notes
in the Tender Offer, and no one has been authorized by us or any of
them to make such a recommendation. Holders must make their own
decision as to whether to tender their notes, and, if so, the
principal amount of notes to tender.
About Videotron
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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