Videotron Ltd. Announces Closing of US$600,000,000 Senior Notes Offering
April 09 2014 - 9:41AM
Marketwired
Videotron Ltd. Announces Closing of US$600,000,000 Senior Notes
Offering
MONTREAL, QUEBEC--(Marketwired - Apr 9, 2014) - Videotron Ltd.
today announced the closing of its issuance and sale of US$600
million aggregate principal amount of 5 3/8% Senior Notes due 2024
(the "2024 Notes"). Videotron intends to use the proceeds of this
issuance to redeem on April 24, 2014 US$260 million principal
amount of its outstanding 9 1/8% Senior Notes due 2018, to repay
drawings under its revolving credit facility, to pay transaction
fees and expenses and to use the remainder 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 2024 Notes have not been and will
not be registered under the United States Securities Act of 1933 or
applicable state securities laws, and the 2024 Notes may not be
offered or sold in the United States absent registration or an
applicable exemption from registration. The 2024 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.
On March 26, 2014, Videotron announced the distribution of a
notice of redemption under the indenture governing its issued and
outstanding 9 1/8% Senior Notes due 2018 for the redemption of
US$260 million aggregate principal amount of such notes on April
24, 2014.
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.514 380-4144For media onlyYouann
BlouinSpecialist, Media and AnalystsCorporate Communications514
380-7069
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