MONTREAL, April 15, 2020 /CNW Telbec/ - Yellow Pages
Limited (TSX: Y) (the "Company") is pleased to announce that the
Toronto Stock Exchange (the "TSX") has accepted a notice filed by
Yellow Pages Digital & Media Solutions Limited (TSX: YPG.DB)
(the "Subsidiary") of the Subsidiary's intention to make a Normal
Course Issuer Bid (the "Bid") to be transacted through the
facilities of the TSX or any alternative Canadian trading
system.
The notice provides that the Subsidiary may, during the 12-month
period commencing on April 20,
2020 and ending on April 19, 2021, purchase up to
$6,647,578 principal amount of its
senior subordinated exchangeable debentures due November 30, 2022 ("Debentures"), being
approximately 10% of the Subsidiary's Public Float (as that term is
defined in the policies of the TSX) based on $107,089,000 principal amount of issued and
outstanding Debentures and a Public Float of $66,475,781 principal amount of Debentures as at
April 9, 2020. The price which the
Subsidiary will pay for any such Debentures will be the prevailing
market price at the time of acquisition. The actual number of
Debentures which may be purchased pursuant to the Bid will be
determined by management of the Subsidiary. All Debentures will be
purchased for cancellation.
Pursuant to TSX policies, the maximum amount of Debentures that
may be purchased in one day pursuant to the Bid will be
$4,963 principal amount of the
Debentures, representing 25% of $19,853 principal amount of the Debentures, being
the average daily trading volume of the Debentures on the TSX for
the six months ended March 31, 2020
(provided that, until June 30, 2020,
the maximum amount of Debentures that may be purchased in one day
pursuant to the Bid will be $9,926,
representing 50% of the average daily trading volume of the
Debentures on the TSX). In addition, the Subsidiary may make, once
per week, a block purchase of Debentures not directly or indirectly
owned by insiders of the Subsidiary, in accordance with TSX
policies.
In connection with the Bid, the Subsidiary entered into an
automatic securities purchase plan ("ASPP") with a designated
broker. The ASPP is intended to allow for the purchase of
Debentures when the Subsidiary would ordinarily not be permitted to
purchase Debentures due to regulatory restrictions and customary
self-imposed blackout periods. Pursuant to the ASPP, before
entering into a blackout period, the Subsidiary may, but is not
required to, instruct the designated broker to make purchases under
the bid in accordance with the terms of the ASPP and TSX policies
during the blackout period. All purchases made under the ASPP will
be included in computing the number of Debentures purchased under
the Bid.
As previously announced on February 13,
2020, the Company intends to make an optional redemption
payment to fully repay the Debentures, on or shortly after
May 31, 2021, at par. As such, the
Board of Directors of the Company believes that the purchase of the
Debentures prior to such date would be in the best financial
interests of the Company depending on the purchase price in order
to accelerate the early redemption process.
About Yellow Pages Limited
Yellow Pages Limited (TSX: Y) is a Canadian digital media and
marketing company that creates opportunities for buyers and sellers
to interact and transact in the local economy. Yellow Pages holds
some of Canada's leading local
online properties including YP.ca, Canada411.ca and 411.ca. The
Company also holds the YP, Canada411 and 411 mobile applications
and Yellow Pages print directories. For more information visit
www.corprate.yp.ca.
This press release contains forward-looking statements about
the objectives, strategies, financial conditions of the Company,
including the Subsidiary's intention to make an optional redemption
payment to fully repay the Debentures in full on or shortly after
May 31, 2021, at par. These
statements are forward-looking as they are based on
our current expectations, as at April
15, 2020, about our business and the markets we operate in,
and on various estimates and assumptions. Our actual results could
materially differ from our expectations if known or unknown risks
affect our business, or if our estimates or assumptions turn out to
be inaccurate. As a result, there is no assurance that any
forward-looking statements will materialize. Risks that could cause
our results to differ materially from our current expectations are
discussed in section 5 of our February 12,
2020 Management's Discussion and Analysis. We
disclaim any intention or obligation to update any
forward-looking statements, except as required by
law, even if new information becomes available, as a result of
future events or for any other reason.
SOURCE Yellow Pages Limited