Videotron Ltd. Prices US$600,000,000 Senior Notes Offering
March 26 2014 - 8:30PM
Marketwired
Videotron Ltd. Prices US$600,000,000 Senior Notes Offering
MONTREAL, QUEBEC--(Marketwired - Mar 26, 2014) - Videotron Ltd.
today announced the pricing of its new issuance of US$600.0 million
aggregate principal amount of 5 3/8% Senior Notes due 2024. The new
senior notes will be sold at par, will carry a coupon of 5 3/8% and
will mature on June 15, 2024. Videotron intends to use the proceeds
of this offering to redeem and retire a portion of its issued and
outstanding 9 1/8% Senior Notes due 2018 (the "2018 Notes") on or
around April 24, 2014 pursuant to a notice of redemption
transmitted pursuant to the indenture governing the 2018 Notes, to
repay drawings under its revolving credit facility, to pay
transaction fees and expenses and for general corporate purposes.
Strong demand permitted Videotron to upsize the offering with
favorable pricing, which clearly demonstrates the strength of the
Company's business and credit profile.
This press release is not an offer to sell or the
solicitation of an offer to buy securities in the United States or
in any other jurisdiction. The senior notes due 2024 mentioned
herein have not been and will not be 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 the 2018 Notes will be made pursuant to a
notice of redemption under the indenture governing the 2018
Notes.
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 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 December 31, 2013, Videotron
was serving 1,825,100 cable television customers, including
1,531,400 subscribers to Digital TV. Videotron is also the Québec
leader in high-speed Internet access, with 1,418,300 subscribers to
its cable service as of December 31, 2013. As of the same date,
Videotron had 503,300 subscriber connections to its mobile
telephone service and was providing cable telephone service to
1,286,100 Québec households and organizations. For the ninth
consecutive year, Videotron was ranked as Québec's most respected
telecommunications company, based on a Léger 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, 2013 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.
Jean-Francois PruneauSenior Vice President and Chief Financial
OfficerQuebecor Media Inc.Telephone: 514 380-4144For media
onlyYouann BlouinSpecialist, Media and AnalystsCorporate
CommunicationsTelephone: 514 380-7069
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