MONTREAL, Aug. 20, 2018 /CNW Telbec/ - Quebecor Inc.
("Quebecor") today announced that it has issued a redemption notice
to the holders of its currently outstanding 4.125% convertible
unsecured subordinated debentures due October 15, 2018 (the "Debentures"). As set out
in the redemption notice, Quebecor intends to redeem all of the
issued and outstanding Debentures on October
12, 2018 (the "Redemption Date"). As of the close of
business on August 17, 2018, there
was $362,500,000 aggregate principal
amount of the Debentures issued and outstanding.
Pursuant to the terms of the Debentures, Quebecor has elected to
exercise its Share Redemption Payment Right with respect to the
entire outstanding principal amount of the Debentures.
Consequently, Quebecor will issue and deliver to the holders on the
Redemption Date approximately 30.1 million Class B Subordinate
Voting Shares (the "Class B shares") in accordance with the
conversion terms of the Debentures. Accrued and unpaid interest on
the Debentures to, but excluding, the Redemption Date shall be paid
in cash to holders. Holders of the Debentures should also refer to
the Trust Indenture dated as of October 11,
2012 for additional information which is available under
Quebecor' s profile on SEDAR at www.sedar.com.
"The decision to exercise Quebecor's Share Redemption Payment
Right followed our analysis of the relevant factors, including
current and targeted market liquidity in the Class B shares as well
as the potential incremental leverage impact of further cash
settlements, in particular following Quebecor's optional cash
redemptions of $137.5 million
aggregate principal amount of Debentures since 2017. This is
consistent with our prudent approach towards balance sheet
management." stated Pierre Karl Péladeau, President and Chief
Executive Officer of Quebecor.
Since the initiation of Quebecor's normal course issuer bid in
2011, Quebecor has repurchased approximately 24.6 million Class B
shares, at a weighted-average price of $16.13. Purchases under the NCIB were made
through the facilities of the Toronto Stock Exchange in accordance
with its requirements, or other alternative trading systems. As
previously announced on August 9,
2018, the Board of Directors of Quebecor elected to renew
Quebecor's normal course issuer bid for a maximum of
1,000,000 Class A Multiple Voting Shares and for a
maximum of 7,800,000 Class B shares for the
August 15, 2018 to August 14,
2019 period.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy or sell securities in any
jurisdiction. The securities referred to herein have not been and
will not be registered under the U.S. Securities Act of 1933
or any state securities laws and may not be offered or sold in
the United States absent
registration or an applicable exemption from the registration
requirements.
The Toronto Stock Exchange has not reviewed and does not
accept responsibility for the adequacy or accuracy of this
release.
Cautionary statement regarding forward-looking
statements
The statements in this press release that are not historical
facts are forward-looking statements and are subject to significant
known and unknown risks, uncertainties and assumptions which could
cause Quebecor's actual results for future periods to differ
materially from those set forth in the forward-looking statements.
Forward-looking statements may be identified by the use of the
conditional or by forward-looking terminology such as the terms
"plans," "expects," "may," "anticipates," "intends," "estimates,"
"projects," "seeks," "believes," or similar terms, variations of
such terms or the negative of such terms. This press release
includes forward-looking statements on Quebecor's prospects, plans,
financial position, business strategy and other opportunities, and
Quebecor's overall strategy. It includes future-oriented financial
information or financial outlook within the meaning of securities
laws, such as the redemption of the Debentures, to inform readers
of the potential financial impact of the redemption notice of the
Debentures. Certain factors that may cause actual results to differ
from current expectations include seasonality (including seasonal
fluctuations in customer orders), operating risk (including
fluctuations in demand for Quebecor's products and pricing actions
by competitors), new competition and Quebecor's ability to retain
its current customers and to attract new ones, risks associated
with the fragmentation of the advertising market, insurance risk,
risks associated with capital investment (including risks related
to technological development and equipment availability and
breakdown), environmental risks, risks associated with
cybersecurity and the protection of personal information, risks
associated with collective agreements, credit risk, financial
risks, debt risks, risks related to interest rate fluctuations,
foreign exchange risks, risks associated with government acts and
regulations, risks related to changes in tax legislation, and
changes in the general political and economic environment.
Investors and others are cautioned that the foregoing list of
factors that may affect future results is not exhaustive and that
undue reliance should not be placed on any forward-looking
statements. For more information on the risks, uncertainties and
assumptions that could cause Quebecor's actual results to differ
from current expectations, please refer to Quebecor's public
filings available at www.sedar.com and www.quebecor.com, including,
in particular, the "Risks and Uncertainties" section in Quebecor's
Management Discussion and Analysis for the year ended December 31, 2017. No assurance can be given that
any events anticipated by the forward-looking information in this
press release will transpire or occur, or if any of them do so,
what benefits that Quebecor will derive therefrom. In particular,
no assurance can be given as to the future financial performance of
Quebecor.
The forward-looking statements in this press release reflect
Quebecor's expectations as of the date of this press release and
are subject to change after that date. Quebecor expressly disclaims
any obligation or intention to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise, except as required by applicable securities laws.
About Quebecor
Quebecor, a Canadian leader in telecommunications,
entertainment, news media and culture, is one of the
best-performing integrated communications companies in the
industry. Driven by their determination to deliver the best
possible customer experience, all of Quebecor's subsidiaries and
brands are differentiated by their high-quality, multiplatform,
convergent products and services.
Quebecor (TSX: QBR.A, QBR.B), is headquartered in Québec, and
employs more than 10,000 people in Canada.
A family business founded in 1950, Quebecor is strongly
committed to the community. Every year, it actively supports more
than 400 organizations in the vital fields of culture, health,
education, the environment and entrepreneurship.
Visit our website: www.quebecor.com
Follow us on Twitter: twitter.com/Quebecor
SOURCE Quebecor