Videotron Ltd. Prices C$400,000,000 Senior Notes Offering
June 03 2013 - 10:52PM
Marketwired
Videotron Ltd. today announced the pricing of its new issuance of
C$400.0 million aggregate principal amount of its 5 5/8% Senior
Notes due 2025. The new senior notes will be sold at par, will
carry a coupon of 5 5/8% and will mature on June 15, 2025, being
the first 12-year Canadian-dollar high-yield corporate bond issued
in the Canadian market. Strong demand permitted Videotron to upsize
the offering with favorable pricing. Videotron intends to use the
proceeds of this offering to finance a portion of the redemption of
US$380.0 million aggregate principal amount of its outstanding 9
1/8% Senior Notes due 2018 (the "2018 Notes") on or around July 2,
2013 pursuant to a notice of redemption transmitted pursuant to the
indenture governing the 2018 Notes, to finance settlement and
termination costs, if any, of related hedging contracts, and to pay
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
due 2025 mentioned herein have not been and will not be registered
under the United States Securities Act of 1933, as amended, or
applicable state securities laws, and may not be offered or sold in
the United States absent registration or an applicable exemption
from registration. The securities mentioned herein 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 redemption of the 2018 Notes will be made pursuant to a
notice of redemption under the indenture governing the 2018
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 illico interactive television service and
its broadband network, which supports high-speed cable Internet
access, analog and digital cable television, and other services. As
of March 31, 2013, Videotron was serving 1,849,200 cable television
customers, including 1,500,300 subscribers Digital TV. Videotron is
also the Quebec leader in high-speed Internet access, with
1,397,300 subscribers to its cable service as of March 31, 2013. As
of the same date, Videotron had 420,900 subscriber connections to
its mobile telephone service and was providing cable telephone
service to 1,274,000 Quebec households and organizations. For the
eighth consecutive year, Videotron was ranked as 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, 2012 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 Senior Vice President and Chief
Financial Officer Quebecor Media Inc. 514 380-4144 For media only:
Youann Blouin Specialist, Media and Analysts Corporate
Communications 514 380-7069 Mobile: 438 491-0825
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